The Korea Development Institute now forecasts South Korea’s gross domestic product growth at 1.6% in 2025, largely due to deteriorating global trade conditions since Trump took office in the U.S.

South Korea's top economic think tank slashed its growth forecast for the country's economy for the second time in four months on Tuesday, expressing concern about the effects of U.S. President Donald Trump's expanding tariffs.

Korea’s state-run think tank cut its growth outlook for this year by 0.4 percent points to 1.6 percent, citing martial law-driven political turmoil and heightened U.S. policy uncertainties.