Seoul: South Korean stocks finished lower Friday, as investors moved to lock in profits from recent sharp gains amid legal uncertainties surrounding the United States' tariff policies. The local currency fell against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI) lost 22.97 points, or 0.84 percent, to close at 2,697.67, ending a two-day winning streak.
According to Yonhap News Agency, trade volume was heavy at 513.39 million shares worth 14.08 trillion won (US$10.21 billion), with losers outnumbering winners 487 to 394. Institutions and foreign investors sold a net 16.49 billion won and 608.1 billion won worth of stocks, respectively, while individuals purchased 602.02 billion won worth of shares.
The market opened slightly lower, one day after the index surged to a 10-month high due to gains in tech shares, and extended losses further as investors assessed the developments of legal battles in the U.S. surrounding U.S. President Donald Trump's tariff scheme. On Thursday, a U.S. federal appeals court temporarily reinstated the tariff policy, just one day after a trade court had blocked them.
"It may take about a year until the appellate ruling and the final decision by the U.S. Supreme Court. Apart from legal issues, the Trump government has various other means to impose tariffs," Han Ji-young, a researcher at Kiwoom Securities, said.
Top-cap shares showed mixed results. Market leader Samsung Electronics edged up 0.18 percent to 56,200 won, while its competitor SK hynix declined 3.54 percent to 204,500 won. Major battery maker LG Energy Solution fell 0.69 percent to 286,000 won, and No. 1 steelmaker POSCO Holdings dropped 1.77 percent to 250,000 won.
Defense company Hanwha Aerospace decreased 5.37 percent to 811,000 won, whereas financial leader KB Financial rose 1.56 percent to 104,300 won. Carmakers saw a decline as well; Hyundai Motor fell 2.98 percent to 185,300 won, and Kia Motors plunged 4.08 percent to 89,400 won. However, bio shares gained ground, with Samsung Biologics increasing 0.58 percent to 1.03 million won, and Celltrion rising 1.45 percent to 161,000 won.
The local currency was quoted at 1,380.1 won against the greenback at 3:30 p.m., down 4.2 won from the previous session.