Seoul: South Korean stocks finished higher Monday, led by strong gains by tech giant Samsung Electronics amid caution over last-minute negotiations with the United States on its aggressive tariff scheme. The local currency fell against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) added 13.47 points, or 0.42 percent, to close at 3,209.52, marking a fourth consecutive day of gains. The session saw heavy trade volume with 500.22 million shares exchanging hands, valued at 13.83 trillion won (US$10.01 billion). Despite the overall market rise, losers outnumbered winners 722 to 179.
Institutional and foreign investors were net buyers, purchasing 452.01 billion won and 480.78 billion won worth of stocks, respectively, while individual investors net sold 998 billion won worth of shares. The index opened on a positive note but traded within a narrow range, as investors remained cautious ahead of critical developments in the negotiations between Seoul and Washington regarding the Trump administration's tariff measures, with an August 1 deadline looming.
Industry Minister Kim Jung-kwan has left for Europe to continue trade discussions with the U.S., while Finance Minister Koo Yun-cheol is slated to meet with Treasury Secretary Scott Bessent on Thursday. Lee Kyung-min, a researcher at Daishin Securities, noted the importance of heightened caution due to increased short-term volatility amid corporate second-quarter earnings releases.
Samsung Electronics surged 6.83 percent to 70,400 won following reports of a lucrative contract valued at over US$16.5 billion to supply semiconductors to U.S. tech giant Tesla. Meanwhile, chip manufacturer SK hynix saw a decline of 1.5 percent to 262,000 won.
In other sectors, LG Energy Solution posted a 4.68 percent rise to 380,500 won, while LG Chemical advanced 1.95 percent to 313,000 won. Defense firm Hanwha Aerospace experienced a slight gain of 0.85 percent to 953,000 won. Among carmakers, Hyundai Motor and Kia Motors saw increases of 0.92 percent and 1.34 percent, respectively.
On the downside, KB Financial fell 6.99 percent to 110,500 won, and nuclear power plant manufacturer Doosan Enerbility dropped 3.64 percent to 63,500 won. Shipbuilders benefited from anticipated stronger cooperation with the U.S., with HD Hyundai Heavy and Hanwha Ocean gaining 4.5 percent and 8.44 percent, respectively.
The local currency depreciated, quoted at 1,382 won against the dollar, down 4.1 won from the previous session. In the bond market, prices rose as yields fell; the three-year Treasury yield decreased by 2.1 basis points to 2.464 percent, and the five-year government bond yield dropped 2.2 basis points to 2.615 percent.