[Minute to Read] South Korean firms brace for Trump’s second term

The Minute to Read (Weekdays) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened yesterday: Nov. 7.

Former U.S. President Donald Trump was elected the 47th president on Nov. 6 and will begin his second term next year. / Yonhap

Korean chipmakers and battery giants brace for Trump’s second term

Donald Trump’s election as the 47th U.S. president has raised concerns among major South Korean companies, prompting them to reconsider their investment and production strategies. His agenda, which includes cutting subsidies, raising tariffs, and pushing for fossil fuel investments, marks a significant departure from the current Biden administration. Korean chipmakers such as Samsung Electronics and SK Hynix are particularly wary because they made substantial investments in the U.S. based on subsidy programs. While subsidies under the CHIPS Act may remain intact, their future is uncertain under a second Trump administration. The EV battery sector, led by LG Energy Solutions, SK On, and Samsung SDI, is also at risk as Trump has vowed to repeal the Inflation Reduction Act.

The won-to-dollar exchange rate opened at 1,402.0 won on Nov. 7, up 5.8 won from the previous day’s closing price of 1,396.2 won. / Park Sang-hoon

Korean won tumbles as Trump’s victory drives dollar rally

The South Korean won’s value declined sharply against the U.S. dollar on Thursday, with the won-dollar exchange rate surpassing the 1,400 won mark for the first time in two years during early trading. Donald Trump’s victory in the U.S. presidential election has unleashed a dollar rally, pushing down the value of the won. Trump’s proposed policies to increase fiscal spending and impose higher tariffs are expected to boost the dollar further. Analysts predict the won-dollar exchange rate may surge to 1,407 won, driven by investor demand for overseas stock purchases and expectations of a Republican “red sweep” in Congress.

President Yoon Suk-yeol apologizes to the public during a press conference at the presidential office in Yongsan District, Seoul, on Nov. 7. / News1

Yoon apologizes for First Lady controversy but calls special counsel bill “political propaganda”

South Korean President Yoon Suk-yeol issued a public apology during a 140-minute press conference on Nov. 7, acknowledging public concern over controversies involving First Lady Kim Keon-hee. He expressed remorse but denied any improper conduct related to his and Kim’s connection with political broker Myung Tae-kyun, a figure central to the scandal. Yoon also rejected calls from the Democratic Party for a special counsel bill to investigate allegations regarding his wife, dismissing it as “unconstitutional” and “political propaganda.” The press conference followed the release of recorded phone conversations suggesting Yoon’s involvement in the ruling People Power Party (PPP) nominations and calls from PPP leader Han Dong-hoon for a presidential apology. Yoon’s approval rating has recently dropped to a record low of 19%.

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