[Top 10 Economic News Stories of 2025] A year marked by tariff truce, KOSPI 4,000 era

Korea’s economy was shaped by major external shocks and policy pivots in 2025. After months of stalled talks, Korea and the United States agreed on a deal cutting U.S. tariffs on key Korean exports to 15 percent, easing pressure on exporters. At the same time, the won weakened sharply, hovering near levels last seen during the 1998 Asian financial crisis. The government also pushed ahead with structural reforms, including separating budget functions from the finance ministry and revising the Commercial Act to strengthen shareholder rights. Financial markets were a study in contrasts. The "KOSPI 4,000 era” began as trading reached new heights, fueled by an AI-driven semiconductor supercycle. However, the rally was heavily concentrated in large-cap stocks, leaving concerns over volatility and overseas profit-taking unresolved. The real economy saw uneven sectoral performance. Korea’s battery industry was forced into restructuring due to a prolonged global EV slowdown, while consumer goods such as instant noodles and cosmetics posted record export growth on the back of K-content popul