Seoul Stocks Dip as Trump’s Tariff Threat Looms Over Investors

Seoul shares closed lower Friday as investors remained cautious over US President Donald Trump’s latest tariff threat. The Korean won fell against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) dipped 4.22 points, or 0.13 percent, to close at 3,188.07. Despite the day’s loss, the main index managed to gain 0.39 percent for the week.

Trading activity was moderate, with 389.98 million shares changing hands, valued at 11.84 trillion KRW ($8.5 billion). Bearish sentiment prevailed as decliners outpaced gainers 589 to 303.

The KOSPI reversed its early morning gains, which had initially followed Wall Street’s positive performance overnight. The Dow Jones Industrial Average had risen 0.52 percent, while the tech-heavy Nasdaq composite climbed 0.75 percent.

Individual investors were net sellers, offloading 340.72 billion KRW worth of stocks. This selling pressure was partially offset by institutional and foreign investors, who were net buyers of 61.85 billion KRW and 187.72 billion KRW, respectively.

President Trump recently notified key US trading partners of new tariff rates scheduled to take effect August 1, unless more favorable terms are negotiated.

Market analysts note that investors are eagerly awaiting second-quarter earnings reports from major companies in the coming weeks, which could provide insight into the market’s future direction. Simultaneously, they’re keeping a close eye on developments in US trade policy.

In Seoul, large-cap stocks showed mixed performance.

HD Hyundai, a leading shipbuilder, saw its shares fall 2.18 percent to 134,800 KRW. The state-run utility company, Korea Electric Power Corp., also declined, dropping 0.68 percent to 36,250 KRW.

Shares of Korean Air, the national flag carrier, decreased by 0.95 percent to 25,950 KRW. HMM, the country’s largest shipping firm, also experienced a decline, shedding 0.99 percent to close at 25,000 KRW.

On the upside, automotive giant Hyundai Motor saw a modest gain of 0.24 percent, closing at 210,500 KRW. Market heavyweight Samsung Electronics climbed 0.6 percent to 67,100 KRW.

Posco Holdings, the leading steelmaker, advanced 1.14 percent to 311,000 KRW, while top battery manufacturer LG Energy Solution posted a significant gain of 1.74 percent, closing at 322,500 KRW.

In currency markets, the Korean won weakened slightly against the US dollar. At the 3:30 p.m. close, the won was trading at 1,393.00 to the dollar, down 0.4 won from the previous session’s close. (Yonhap)