Korea Business Review · Section
GLOBAL ECONOMY
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Global Economy
U.S. Manufacturing Hourly Compensation Rose While Unit Labor Costs Fell: Why They Must Be Read Together with Productivity
U.S. manufacturing hourly compensation rose in the second quarter while unit labor costs declined. We analyze how to distinguish between labor costs, productivity, and investment effects by breaking down BLS revision formulas and periods.
강지혜 Editor · 09/26/2026
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Global Economy
Looking Only at Crude Prices Misses Fuel Costs: IEA Highlights Refined Product Bottlenecks and Corporate Procurement Choices
강지혜 Editor · 09/25/2026
Global Economy
Bank of Japan Decides to Raise Policy Rate to 1.25%: When Will Costs Change for Yen-Transacting Companies?
박소유 Editor · 09/21/2026
Global Economy
The Fed Raised the Benchmark Rate to 3.75–4.00%: Three Costs South Korean Companies Should Check Before the Exchange Rate
KBR경영연구소 · 09/18/2026
Global Economy
European Central Bank Rate Hike: How Will Loan Interest, Export Proceeds, and Costs Change for Korean Companies?
류현진 Editor · 09/16/2026
Global Economy
Corporate Risks of Waiting Solely for US Interest Rate Cuts
While the US Federal Reserve kept rates on hold in July with three members demanding hikes, the Bank of Korea raised its base rate in August. Ahead of the September FOMC, we examine the conditions of the policy path through inflation and labor data. We analyze the impacts on South Korean companies by dividing them into exchange rates, foreign currency debt, and customer demand, and suggest reviewing maturity management, currency-specific cash flows, and contract terms.
강지혜 선임기자 · 09/14/2026
Global Economy
US Manufacturing PMI at 54.6: Why Costs Refuse to Fall Despite Slowing New Orders
The US manufacturing PMI for August stood at 54.6, remaining above the threshold of 50 to continue its expansion phase, though down from July. The new orders index fell to 53.7, indicating that while demand is still growing, the pace of growth is slowing. The prices paid index stayed high at 71.1, matching July's level and showing that manufacturers' cost pressures are not easily easing. Tariffs, energy prices, electronic component supply issues, and labor costs are acting simultaneously, creating a pattern of slowing orders coupled with rising costs. Korean companies need to examine changes in US orders, tariff structures, inventory replenishment demand, and local cost shifts on a category-by-category basis.
강지혜 선임기자 · 09/05/2026
Global Economy
China's Quiet Weapon: Rare Earths and Battery Supply Chains as the Biggest Bottlenecks for Global Industry in 2026
In October 2025, China expanded its rare earth export controls to 12 categories and introduced a 0.1% extraterritorial application, with many of the related measures suspended until November 10, 2026. Japan experienced actual, un-suspended controls, leading to sharp 88% and 82% declines in its rare earth imports from China in March and April respectively, with dysprosium and terbium imports dropping to virtually zero since January. Rare earth prices have surged since the beginning of the year, forming a "dual-market" structure where supplies sourced outside China command a 4 to 6 times premium over domestic Chinese prices. While MP Materials and Lynas have established initial milestones for a non-China supply chain, they are still far from sufficient to replace China's refining market share (approximately 91%). The South Korean battery industry must build the framework for alternative supply chains within this year, caught between a double deadline: the expiration of China's suspension on November 10 and the expiration of the US FEOC graphite suspension at the end of the year.
이지영 기자 · 07/10/2026
Global Economy
Rate Cuts Are Over, Hikes Are Next: How the Warsh Fed Reversed the Course of Interest Rates
At its first FOMC meeting under the Warsh regime, the Federal Reserve kept its benchmark interest rate frozen at 3.50–3.75% for the fourth consecutive time. However, the dot plot signaled the possibility of a rate hike within the year, effectively declaring the end of the easing cycle. International oil prices have surged due to military conflicts between the U.S. and Iran in the Middle East, and May inflation indicators rose to the low-4% range, signaling a re-acceleration of inflation. U.S. employment indicators remained robust in May with 150,000 to 200,000 job additions and an unemployment rate in the low-to-mid 4% range, weakening the justification for rate cuts with this 'high inflation and solid employment' combination. In South Korea, amid an environment of a 2.50% base rate, a won-dollar exchange rate of 1,530–1,560 won, and 3.2% consumer inflation, the Bank of Korea's monetary policy dilemma is deepening as it must simultaneously account for the exchange rate, inflation, and household debt. U.S. interest rates are entering a phase shifting from 'higher for longer' to simply 'higher,' making it time for businesses and investors to redesign their foreign exchange hedging, financing, and portfolio strategies based on scenario-driven response systems rather than relying on 'rate cuts within the year.'
강지혜 선임기자 · 07/04/2026
Global Economy
New Zealand's 'Brain Drain' Warning: Why Young People Are Leaving for Australia
According to Stats NZ data for the year ending March 2026, 62,800 citizens departed New Zealand, resulting in a net outflow of approximately 36,500, with 63% heading to Australia. The outflow was concentrated among young adults aged 18 to 30 (24,900 people, or 40%), driven by an income gap of around 1.5 times compared to Australia, an economic downturn, and low migration barriers such as the Special Category Visa (Subclass 444) which requires no prior application. While this massive exodus lowers short-term unemployment statistics, it creates a vicious cycle that erodes growth potential by losing young talent—in whom education investments were made—just as they reach the age of paying taxes and starting families. The relocation of former Prime Minister Jacinda Ardern to Sydney is cited as a symbol of this trend, solidifying a structure where job shortages trigger emigration, which in turn weakens momentum. The implication for South Korea is that population 'net growth' statistics can mask the outflow of youth and citizens, and that the pressure of overseas emigration among core talent in sectors such as semiconductors, secondary batteries, and AI must be managed from a long-term growth perspective.
박찬호 선임기자 · 06/16/2026
