South Korea has cut its interest rate to 2.5% and sharply lowered its growth forecast amid mounting trade tensions and domestic instability. The central bank warned of a deeper downturn than the 2008 crisis, with exports weakening and uncertainty surrounding inflation and global economic conditions. As the country prepares for a presidential election, hopes rest on potential fiscal stimulus and successful trade negotiations with the U.S. to ease ongoing tariff pressures.

Introduction The South Korean Won (KRW) is the official currency of South Korea, managed by the Bank of Korea (BOK). As the...