South Korean Financial Market Update

South Korean equities mirrored Wall Street’s decline but are poised for weekly gains. The KOSPI saw a third consecutive session of increases, achieving a one-month peak on Tuesday. This surge was propelled by automakers, buoyed by investor optimism regarding the potential impact of US President Donald Trump’s tariffs.

The benchmark KOSPI index climbed by 9.91 points, a 0.4% rise, reaching 2,558.77 as of 0134 GMT, marking its highest point since March 28.

Reports indicate that the Trump administration intends to moderate the effect of automotive tariffs. This will be achieved by easing certain duties on imported components used in locally produced vehicles and preventing cumulative tariffs on vehicles manufactured abroad, according to officials.

A recent poll indicates that South Korea’s export figures are projected to have decreased in April, influenced by the implementation of tariffs by the Trump administration, particularly on automobiles and steel products.

Within the benchmark index, Hyundai Motor shares saw an increase of 0.85%, while Kia Corp experienced a gain of 1.35%, leading the market’s upward trajectory. The automotive industry anticipates being significantly affected by the imposition of US tariffs.

Among other prominent stocks, Samsung Electronics increased by 0.54%, while SK Hynix decreased by 0.82%. LG Energy Solution also saw an uptick, rising by 0.29%.

Overall market activity showed 572 shares advancing and 302 declining out of the 934 issues traded.

Foreign investors were net sellers, offloading shares valued at 213.6 billion won (approximately $148.34 million).

The Korean won was valued at 1,439.5 per dollar on the domestic settlement platform, a 0.19% decrease from its previous closing value of 1,436.8.

In the money and debt markets, June futures for three-year treasury bonds increased by 0.03 points, reaching 107.76.

The yield on the most liquid three-year Korean treasury bond experienced a decrease of 1.3 basis points, settling at 2.304%. Conversely, the yield on the benchmark 10-year bond increased by 0.9 basis points, reaching 2.597%.