Seoul: South Korean stocks traded lower late Wednesday morning as investors moved to take profits from recent gains amid uncertainties from the United States' tariff scheme. The benchmark Korea Composite Stock Price Index (KOSPI) lost 47.66 points, or 1.54 percent, to 3,041.99 as of 11:20 a.m. The index opened lower and extended losses further on heavy selling by foreign investors.
According to Yonhap News Agency, eyes are on trade talks with the United States, with just a week remaining until the deadline for negotiations. In April, U.S. President Trump suspended the imposition of reciprocal tariffs on trading partners, including 25 percent duties on South Korea, until July 8 to allow time for talks. Investor sentiment was also weighed down by the fading prospect of interest rate cuts by the Federal Reserve.
In Seoul, large-cap shares traded mixed. Market bellwether Samsung Electronics rose 0.33 percent, while chip giant SK hynix sank 3.24 percent. Leading battery maker LG Energy Solution added 0.5 percent, but nuclear power plant manufacturer Doosan Enerbility nose-dived 3.68 percent.
Carmakers gathered ground with top automaker Hyundai Motor advancing 1.19 percent, and its sister affiliate Kia climbing 0.71 percent. Leading financial firm KB Financial went up 0.36 percent, while defense systems giant Hanwha Aerospace sank 4.77 percent. Top online portal operator Naver dipped 3.82 percent, and Kakao, the operator of the country's dominant mobile messenger, tumbled 2.66 percent.
The local currency was trading at 1,362.4 won against the U.S. dollar at 11:20 a.m., down 6.5 won from the previous session.