Seoul: South Korean stocks started sharply lower Monday amid growing fears of a global trade war triggered by U.S. President Donald Trump's tariff plans and China's countermeasures. The benchmark Korea Composite Stock Price Index (KOSPI) lost 103.56 points, or 4.2 percent, to 2,361.86 in the first 15 minutes of trading.
According to Yonhap News Agency, with the steep drop, the bourse operator issued a sidecar order at 9:12 a.m., halting program purchasing for five minutes after the KOSPI 200 index shed over 5 percent for more than 1 minute. It was the first sidecar order for program buying since August 2024.
Investors quickly moved to sell stocks as recession fears intensified following the Trump administration's announcement of reciprocal tariffs last week, which led to China's retaliation with additional 34 percent tariffs on U.S. goods. Wall Street experienced its worst week since the COVID-19 pandemic, with the S and P 500 dropping 6 percent on Friday, while the Dow Jones Industrial Average fell 5.5 percent and the Nasdaq composite lost 5.8 percent.
In Seoul, major stocks were declining. Market leader Samsung Electronics fell 3.74 percent, and its chipmaking competitor SK hynix dropped 5.43 percent. Top carmaker Hyundai Motor decreased by 4.74 percent, and major defense firm Hanwha Aerospace slipped 5.56 percent. Leading shipbuilders Hanwha Ocean and HD Hyundai Heavy declined by 6.06 percent and 4.5 percent, respectively. Financial shares also fell sharply, with KB Financial dipping 6.18 percent and Shinhan Financial losing 4.78 percent.
The local currency was trading at 1,467.2 won against the U.S. dollar at 9:15 a.m., down 33.1 won from the previous session.