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October 22 Korea News Brief — Jeonse Shortage, Inflation Pressure, and Trade Surplus Trends




■ Politics & Security

[Breaking] North Korea Fires Ballistic Missile Toward the East Sea

(Seoul = Newsroom) Early this morning, North Korea launched a ballistic missile toward the East Sea, according to South Korea’s Joint Chiefs of Staff. Details are under analysis.
Outlook (Domestic/Global): South Korea is expected to strengthen military readiness and sanctions monitoring, while the global community focuses on trilateral cooperation among South Korea, the U.S., and Japan.

■ Foreign Affairs & Trade

Industry Minister Visits the U.S. for Tariff and Investment Talks

(Seoul = Newsroom) The Minister of Trade, Industry and Energy made an unscheduled trip to the U.S. to discuss a “tariff-investment” package deal. The main issues include the 25% auto tariff and Korea’s investment roadmap in the U.S.
Outlook: The domestic industry hopes to mitigate export damage, while global observers note Korea’s evolving trade model.

■ Economy & Finance

Bank of Korea Expected to Hold Base Rate

Market surveys show strong expectations for the central bank to keep its base rate unchanged in October, with a possible 25 bp cut projected for Q2 2026. GDP growth is expected around 1%, with inflation in the low 2% range.


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■ Economy & Trade

South Korea Maintains Trade Surplus as Exports Recover

South Korea continues to record a trade surplus, posting $9.56 billion in September 2025 — a sharp improvement year-on-year.
Exports grew 12.7%, while imports rose 8.2%, widening the surplus. Strong semiconductor exports and moderate import growth contributed significantly.
Outlook: Export recovery is likely to continue, but risks remain due to global slowdown and trade environment uncertainties.


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■ Stock Market

KOSPI Holds at Annual Highs Amid Profit-Taking Risk

The KOSPI remains near its yearly highs, led by AI and semiconductor shares, though investors are cautious about potential profit-taking.

■ Industry & IT

Samsung Electronics Reports ₩12.1 Trillion in Operating Profit for Q3

Demand for AI-related chips boosted memory prices and profits. The company is preparing for the mass production of HBM4, which is drawing market attention.

■ Society & Real Estate

Seoul Jeonse Market Tightens — Shift Toward Monthly Rent Accelerates

Seoul’s jeonse (lump-sum rental deposit) listings are rapidly disappearing — down 23% compared to early this year.
Some major apartment complexes have zero available units for jeonse. The jeonse supply index has risen to 154, the highest in four years.
With the moving season underway, landlords increasingly prefer converting to monthly rent.
Outlook: The shortage is expected to persist, potentially leading to structural shifts in Korea’s rental market.

■ Inflation & Cost of Living

Inflation Pressure Persists — Households Feel the Squeeze

Although headline inflation eased to around 1.7%, prices of food and non-alcoholic beverages continue to climb.
Processed foods rose 4.2%, seafood 6.4%, and meat 5.4%, heightening the burden on households.
Gold bar demand surged as consumers seek protection against inflation, with some banks reportedly running low on supply.
Outlook: While not at crisis levels, continued price increases for essentials may strain household budgets in the coming months.

■ International

Gaza Conflict Escalates — Israel Expands Ground Operations

(Jerusalem = Reuters) Israel expanded ground operations in northern Gaza. Hamas reported civilian casualties and appealed for international mediation.
The UN has called for an immediate humanitarian ceasefire, but both sides remain defiant.
Outlook: The Middle East crisis is fueling oil market volatility, and several European nations are considering further sanctions.

China’s Property Slump Deepens — Foreign Capital Flees

Property indicators in Beijing and Shanghai hit new lows this year as Evergrande’s restructuring delays continue.
Outlook: Analysts warn that China’s slowdown could pressure emerging market currencies and reduce global demand for raw materials.

■ Lifestyle & Weather

Autumn rain is expected nationwide this week, followed by a noticeable drop in temperature toward the weekend.

■ Sports

The Hanwha–Samsung playoff Game 4 will be held today in Daejeon. Heavy traffic is expected around the stadium area.

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