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Analysis Israel-Iran war and tariff shocks endanger South Korea’s economic recoveryRising energy prices and Trump’s tariff deadline have injected volatility and triggered markets to reprice Seoul’s risk The war between Israel and Iran and U.S. tariff threats are amplifying economic uncertainty for South Korea at a time when its recovery remains fragile. President Lee Jae-myung, now in his third week in office, faces immediate pressure to contain inflationary risks and external volatility without derailing his government’s stimulus agenda. Together, the two shocks have caused global markets to reprice South Korea’s macroeconomic risk. U.S. President Donald Trump’s early departure from the G7 summit in Canada and his subsequent call for Iran’s “unconditional surrender” have added urgency to the geopolitical risk premium in global markets. Though © Korea Risk Group. All rights reserved. |





