Seoul: South Korean stocks traded nearly unchanged late Thursday morning, as investors assessed the impact of the crucial tariff agreement with the United States on the industry and the economy. The benchmark Korea Composite Stock Price Index (KOSPI) added 0.42 point, or 0.01 percent, to 3,254.89 as of 11:20 a.m.
According to Yonhap News Agency, the index opened higher but had since moved within a tight range. Earlier in the day, the two nations announced a trade deal that would impose a 15 percent tariff on South Korean imports and calls for US$350 billion in U.S. investments. U.S. President Donald Trump earlier had threatened to impose a 25 percent levy.
Top-cap shares traded mixed. Market bellwether Samsung Electronics fell 1.24 percent, while chip giant SK hynix surged 3.61 percent. Leading battery maker LG Energy Solution rose 0.64 percent, but major bio company Samsung Biologics dipped 2.28 percent. Defense giant Hanwha Aerospace jumped 2.56 percent, and leading shipbuilder HD Hyundai Heavy spiked 4.56 percent. Nuclear power plant manufacturer Doosan Enerbility went up 0.31 percent.
Automakers lost ground as the new trade scheme is expected to markedly raise auto tariffs. Top automaker Hyundai Motor sank 3.92 percent, while its sister affiliate Kia dropped 6.07 percent. Leading steelmaker POSCO traded unchanged.
The local currency was trading at 1,390.1 won against the U.S. dollar at 11:20 a.m., down 7.0 won from the previous session.