South Korea's central bank held interest rates steady on Thursday, as policymakers steered a cautious path amid concerns about financial stability risks stemming from rising household debt and economic pressure from U.

The US sets reciprocal tariffs of 25% for Japan and South Korea. Both countries vowed to accelerate negotiations within three weeks.

The Bank of Korea (BOK) kept its benchmark interest rate steady at 2.50% on Thursday, maintaining a cautious monetary stance amid growing financial stability concerns and external trade pressures. The central

President Donald Trump announced on Monday that he is levying tariffs against South Korea and Japan beginning in August. Trump

On Monday, President Donald Trump announced 25% taxes on products from Japan and South Korea, in addition to the threat of higher potential tariffs on goods from those nations if they raise their tariffs on American goods.

Many countries thought they were negotiating in good faith. The White House renewed its “reciprocal” tariff plan anyway, giving countries until Aug. 1 to make offers.

The president has already threatened an additional 10% tariff on goods from countries aligning themselves with a bloc of nations that includes China and Russia.

The Korea Customs Service has nabbed two local companies on charges of illegally exporting steel products to the European Union (EU) without paying tariffs.