Seoul: South Korean stocks fell for the second consecutive session Thursday as the United States unveiled higher-than-expected reciprocal tariffs on imports from Asia's fourth-largest economy. The local currency declined slightly against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) fell 19.16 points, or 0.76 percent, to close at 2,486.7. The index had fallen to as low as 2,437.43 points, but recovered part of its losses in the afternoon session. Trade volume was slim at 474.7 million shares worth 8.2 trillion won (US$5.59 billion), with decliners outnumbering gainers 606 to 276.
Foreign investors sold a net 1.37 trillion won worth of stocks, leading the daily decline, while institutions bought a net 457.7 billion won and individuals purchased a net 798.3 billion won. Overnight, U.S. President Donald Trump announced a 10 percent "baseline" tariff on imports from all countries to the United States and country-specific "reciprocal" tariffs that include 26 percent duties for South Korea. The baseline tariffs will take effect on Friday, and the reciprocal duties will be applied to South Korea starting next Wednesday (U.S. time).
In Seoul, major exporters, such as tech companies and carmakers, experienced declines. Tech giant Samsung Electronics sank 2.04 percent to 57,600 won, and its chipmaking rival SK hynix lost 1.67 percent to 194,600 won. According to the White House, semiconductors are not subject to the latest reciprocal tariffs. Carmakers were among the big losers as the U.S.' 25 percent automotive tariffs went into effect Thursday. Industry leader Hyundai Motor dropped 1.27 percent to 193,800 won, and its sister company Kia declined 1.41 percent to 90,800 won.
Leading battery maker LG Energy Solution tumbled 4.26 percent to 315,000 won, and instant noodle maker Samyang Food skidded 1.98 percent to 843,000 won. However, top defense firm Hanwha Aerospace jumped 5.13 percent to 697,000 won after signing a 371.4 billion-won export deal with the Indian government.
The local currency was trading at 1,467 won against the greenback at 3:30 p.m., down 0.4 won from the previous session.