Tuesday morning, the KOSPI opened down by 5.2 points, or 0.2 percent, at 2,543.66. This drop showed investor caution after a mixed day on Wall Street. There are ongoing concerns about how U.S. tariffs might affect South Korea’s economy, especially in key industries like semiconductors and automotive.
These tariffs could hurt exports and impact the country’s GDP if they are fully enforced without relief.
As the day went on, the market improved. By mid-morning, the KOSPI rose to 2,568.30, gaining 19.44 points, or 0.76%, from the previous day. This increase reflects some optimism around the ongoing talks for tariff exemptions on Korean goods.
Last week, South Korean and U.S. officials had important trade meetings in Washington. They talked about creating a “July Package,” which aims to remove U.S. tariffs on Korean exports before the July 8 deadline.
That deadline is important because it marks the end of a 90-day period for reciprocal tariffs. The talks focus on tariffs, non-tariff barriers, economic security, and investment cooperation.
Even with this progress, uncertainty remains. The KOSPI’s early drop saw major companies like Samsung Electronics and SK hynix fall in value. The shipbuilding sector also took a hit, notably with Hanwha Ocean seeing significant losses.
On a brighter note, automakers Hyundai Motor and Kia gained, possibly due to hopes for positive results in the tariff discussions. Major battery maker LG Energy Solution also saw a slight increase.
In general, markets across the Asia-Pacific region were calm, as investors considered the impact of tariffs and waited for more U.S. economic data. The Korean won strengthened slightly against the dollar, trading around 1,438.75 in early trading.
Investors are keeping a close watch on the Korea-U.S. tariff negotiations. While the plan to pursue the “July Package” provides a path forward, the KOSPI’s small shifts show that the market is weighing hope for an agreement against ongoing risks from trade disputes. The results of these talks before the July deadline will be crucial for future market trends.