Seoul: South Korean stocks closed higher for two consecutive sessions on Tuesday as investors welcomed U.S. President Donald Trump's decision to extend the deadline for tariff negotiations with trade partners until the start of next month. The local currency experienced a slight decrease against the U.S. dollar.
According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) rose by 55.48 points, or 1.81 percent, concluding at 3,114.95. The trading volume was significant, with 735.5 million shares valued at 13.2 trillion won (approximately US$9.65 billion) being traded. The number of gainers surpassed decliners, with 643 stocks rising compared to 240 falling.
Foreign investors played a major role in the market's upward trend, purchasing a net 251.6 billion won worth of stocks, while institutional investors acquired a net 21.6 billion won. In contrast, individual investors sold a net 263.1 billion won.
Earlier in the day, President Trump released a letter to South Korean President Lee Jae Myung, stating that the United States intends to implement 25 percent tariffs on South Korean goods starting August 1. Similar letters were sent to Japan and other countries. Analysts noted that while the letter posed challenges for South Korea, it also provided clarity on U.S. tariff policies, reducing uncertainties.
The U.S. had previously introduced country-specific reciprocal tariffs in April, with a 90-day suspension that was set to expire on Tuesday (U.S. time). Financial and energy shares emerged as significant gainers, with Hana Financial Group and Woori Financial Group seeing substantial increases. Samsung Fire and Marine Insurance, along with Kyobo Securities, also witnessed notable gains.
In the energy sector, Korea Electric Power Corp. and Doosan Enerbility recorded positive performances. The automotive industry saw Hyundai Motor and Kia finish in positive territory. However, Samsung Electronics experienced a dip, losing 0.49 percent, following its disappointing second-quarter earnings guidance. The company projected a 55.9 percent decline in operating profit due to a sluggish chip business and the impact of U.S. trade policies.
The local currency was quoted at 1,367.9 won against the U.S. dollar at 3:30 p.m., a slight decrease of 0.1 won from the previous session.