South Korean Financial Market Update

South Korean equities experienced gains for the fourth consecutive session on Monday, achieving levels close to an 11-month peak, fueled by anticipation of policy adjustments following recent elections. Investor attention was also directed towards ongoing discussions between the United States and China regarding trade.

The benchmark KOSPI index saw an increase of 47.58 points, equivalent to a 1.69% rise, reaching 2,859.63 as of 0123 GMT. This marks the highest point for the index since July 17, 2024.

Senior advisors to US President Donald Trump are scheduled to engage with their Chinese counterparts in London later today. The objective is to seek resolutions to the trade tensions between the world’s two largest economies, a situation that has introduced volatility into global markets.

Following his election this week, South Korea’s newly elected president, Lee Jae-myung, and Donald Trump, have affirmed their commitment to expediting tariff negotiations. This agreement was reached during their initial phone conversation, according to President Lee’s office on Friday.

Key players in the index demonstrated varied performance. Chip manufacturer Samsung Electronics increased by 2.03%, while competitor SK Hynix rose by 2.67%. Conversely, battery producer LG Energy Solution experienced a decrease of 2.23%.

In the automotive sector, Hyundai Motor saw a rise of 3.96%, and its affiliate Kia Corp increased by 2.90%. Steel manufacturer POSCO Holdings gained 0.97%, while pharmaceutical company Samsung BioLogics increased by 0.39%.

Overall market activity showed positive momentum, with 696 of the 937 issues traded advancing, and 212 declining.

Foreign investors demonstrated a net buying interest in shares, amounting to 244.8 billion won ($180.16 million).

The Korean won was valued at 1,363.5 per dollar on the local settlement platform, reflecting a 0.51% decrease from its previous closing value of 1,356.5.

In the money and debt markets, June futures for three-year treasury bonds declined by 0.08 point, settling at 107.18.

The yield on the three-year Korean treasury bond, which is highly liquid, increased by 3.6 basis points to reach 2.449%. Simultaneously, the benchmark 10-year yield rose by 1.4 basis points, reaching 2.907%.