Instead of retreating, South Korea is accelerating trade liberalization, with agreements signed with dozens of countries since 2018.

A rapidly changing global economic landscape was the hallmark of this year’s International Monetary Fund (IMF) Spring Meeting, as the latest trade-related measures announced by the White House brought tariff rates to levels not seen in a century.

The ensuing uncertainty has led to the IMF readjusting the global growth reference forecast to 2.8 percent for 2025, a downgrade from the 3.3 percent projection in its previous updated outlook. While not as threatening as other projections, the new estimate warns about the risks from elevated trade policy uncertainty.

For South Korea, the problem is especially pertinent given the risks arising from the domestic political uncertainty and increased external trade tension. At least one of these sources is likely to dissipate once a new administration is inaugurated after the election on June 3. However, there are signs of a softening economy.

The latest figures released by the Bank of Korea (BoK) suggest that inflation has consistently remained at around 2 percent while growth has been readjusted to negative territory. Reduced domestic uncertainty may help to restore consumer and investor confidence at home, which has been at a new low since the recovery from........

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