Business
US tariffs pose major headwinds, need to diversify supply chains: BOK chief
Seoul, April 24: South Korea’s top central banker has said global trade tensions sparked by the United States’ sweeping tariff policy are a major headwind for the country’s export-driven economy, and the issue will likely accelerate its efforts to diversify supply chains.
Bank of Korea (BOK) Governor Rhee Chang-yong made the assessment during an interview with CNBC in Washington, where he is attending meetings of the Group of 20 (G20) finance ministers and central bank chiefs, as well as International Monetary Fund–World Bank Group (IMF-WBG) meetings, reports Yonhap news agency.
“We are an export-oriented economy. So the trade tension, definitely, too is large headwinds. We will be affected directly by the U.S. tariffs, and also indirectly to its tariff to other countries. For example, our semiconductor production in Vietnam, car and electronics production in Mexico and our battery production in Canada will be affected,” Rhee said.
“I really hope this trade tension will dissipate, because it’s bad for everybody,” he added.
But South Korea has “some strengths” to manage the issue, as the country has been “luckily” diversifying its supply chains, particularly from China, over the last several years amid growing competition from China and some political issues between the two nations.
“This is a kind of natural movement to diversify our supply chain and also move up to the value chain. So that will continue, but at the same time, the recent trade tension will probably expedite the move,” Rhee said.
Speaking of economic growth, Rhee said it is hard to present a growth outlook due to high uncertainties surrounding the U.S. tariff policy.
“At this moment, I don’t know what kind of trade tension scenarios we have to assume as a baseline or reference scenarios,” Rhee said. “I may have a better idea after tariff talks with the U.S. tomorrow.
South Korea and the U.S. are set to hold tariff talks in Washington on Thursday (U.S. time), as the Donald Trump administration has put on hold the implementation of 25 percent reciprocal tariffs on South Korean imports for 90 days.
South Korea’s real gross domestic product (GDP) contracted 0.2 percent in the January-March period from the previous quarter, according to the BOK’s preliminary data released in the day.
The BOK earlier expected the South Korean economy to expand 1.5 percent this year, but Rhee later said the outlook seemed “too optimistic” and the central bank will come up with its adjusted figure in May.
International
Dead penguins found on Australian island to be tested for H5N1 bird flu

A flock of 28 penguins that were found dead on an island off the coast of the Australian state of Tasmania will be tested for the H5N1 strain of avian influenza, authorities said on Thursday.Tasmania’s Department of Natural Resources and Environment said that 28 penguins and three greater crested terns were found dead by surveillance teams on King Island, about 100 km off Tasmania’s northwest coast, on Wednesday.
Incident controller Wes Ford said that samples from the birds have been sent to be tested for the H5N1 strain and that the birds would be collected on Thursday to reduce the risk of transmission, reports Xinhua news agency.”Tasmanians care deeply about our wildlife, and particularly our penguins, so we understand that reports like these may be distressing for the community,” he said.
The island state reported its first case of the highly pathogenic strain on Aug. 13, almost two months after it was first detected on the Australian mainland in June.Ford said there had been 11 confirmed H5N1 cases in Tasmania as of Thursday, all in the state’s northwest or on King Island.
“We expect to continue receiving reports of sick and dead birds on King Island, along the northwest coast and in other parts of Tasmania,” he said.He urged Tasmanians to keep cats indoors and to walk dogs on leads to minimise their infection risks and to avoid contact with sick or dead animals.According to the federal Department of Agriculture, Fisheries and Forestry, there have been 262 confirmed positive H5N1 bird flu events in Australian wildlife as of Aug. 18, but there have been no detections in poultry or the agriculture industry.
Business
LIC gets RBI nod to increase HDFC Bank stake to 9.99 pc; stocks trade higher

New Delhi: Shares of Life Insurance Corporation of India (LIC) — the country’s largest insurer — traded 1 per cent higher on Thursday after receiving approval from the Reserve Bank of India (RBI) to increase its stake in HDFC Bank to up to 9.99 per cent.
In its regulatory filing, HDFC Bank said the RBI has approved LIC’s application to acquire up to 9.99 per cent of the bank’s paid-up share capital or voting rights.
In addition, LIC currently holds 4.11 per cent of HDFC Bank’s total share capital as of August 14, according to the filing.
The approval gives the state-owned insurance firm flexibility to significantly increase its holding in the private sector lender, subject to applicable regulatory and statutory requirements.
The RBI approval is also subject to conditions specified by the central bank and compliance with relevant Securities and Exchange Board of India (SEBI) regulations, it said.
However, the approval does not mean that LIC will immediately raise its holding to 9.99 per cent. Any increase in stake will have to be undertaken in accordance with the conditions laid down by the RBI and other applicable regulatory norms.
LIC is one of India’s largest institutional investors, while HDFC Bank is among the country’s leading private sector lenders.
Shares of LIC traded around 1 per cent higher at Rs 417.40 on the BSE in early trade on Thursday. The PSU stock has touched a 52-week high of Rs 468.30 and a 52-week low of Rs 361, according to the exchange.
Similarly, HDFC Bank stock also traded higher, jumping 1.09 per cent to Rs 728 on the aforesaid exchange. The banking stock recorded a 52-week high of Rs 1,020.35 and a 52-week low of Rs 715.05.
Business
New multi-tracking projects to boost rail infrastructure across 4 states: PM Modi

New Delhi, Aug 19: Prime Minister Narendra Modi said on Wednesday that four multi-tracking projects that have been approved by the Cabinet will provide a major boost to railway infrastructure and connectivity across Andhra Pradesh, Odisha, Tamil Nadu and West Bengal.
These projects will have many benefits, like strengthening passenger and freight movement, reducing congestion and greater logistics efficiency. The better connectivity will also facilitate commerce and tourism in these states, PM Modi said in a post on X.
The multi-tracking projects will add important capacity to the Indian Railways network and benefit lakhs of people, he added.
The projects, which entail a total investment of Rs 9,450 crore, will be completed by 2030-31.
The projects include the Kharagpur – Bhadrak (Ranital) 4th Line across a stretch of 173 km covering West Bengal and Odisha; the second project is a 4th line from Bhadrak to Haridaspur across 75 km in Odisha, while the third is the Gummidipundi – Gudur 3rd and 4th line extending across a distance of 90 km in Andhra Pradesh and Tamil Nadu. The fourth project is the Cuttack to Paradeep (Badabandha) 3rd and 4th lines to cover a 72 km route in Odisha.
The projects are in line with the Prime Minister’s vision of a New India, which will make people of the region “Atmanirbhar” by way of comprehensive development in the area, which will enhance employment opportunities, a statement said.
The projects are planned on the PM-Gati Shakti National Master Plan with a focus on enhancing multi-modal connectivity and logistics efficiency through integrated planning and stakeholder consultations. These projects will provide seamless connectivity for movement of people, goods and services.
The four projects covering eight districts across West Bengal, Odisha, Tamil Nadu and Andhra Pradesh will increase the existing network of Indian Railways by about 410 kms. The proposed multi-tracking projects will enhance connectivity to approximately 6,448 villages with a population of about 60 lakhs.
The proposed capacity enhancement will improve rail connectivity to several prominent tourist destinations across the country, including Kuldiha Wildlife Sanctuary, Bhitarkanika National Park, Maa Bhadrakali temple, Maa Dhamarai temple, Panchalingeswar Temple, Talsari–Udaypur and Chandipur Beach, Pulicat Lake, Nelapattu Bird Sanctuary, Lord Veeraraghava Perumal Temple, Gada Kujanga Jagannath Temple, Sarala Temple, Dhabaleswar Temple and Lalitgiri, a Buddhist site.
The proposed projects are essential routes for transportation of commodities such as coal, iron ore, cement, iron and steel, containers, automobiles and food grains.
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