Seoul Stocks Surge Despite Trump’s Tough Tariffs on South Korea

Seoul shares opened nearly 1 percent higher Tuesday despite US President Donald Trump’s decision to impose 25 percent tariffs on South Korean imports and a sluggish first-quarter earnings guidance report from Samsung Electronics.

The benchmark Korea Composite Stock Price Index (KOSPI) climbed 28.35 points, or 0.93 percent, to 3,087.82 in the first 15 minutes of trading.

Earlier Tuesday, Trump released a letter to South Korean President Lee Jae Myung, announcing that the United States will implement 25 percent tariffs on South Korean products beginning August 1.

Meanwhile, Samsung Electronics estimated its second-quarter operating profit plummeted 55.9 percent year-over-year, citing a weak chip market and fallout from U.S. trade policies. The forecast fell short of market expectations.

Financial and shipbuilding sectors led the market gains. KB Financial jumped 2.88 percent, while HD Hyundai Heavy Industries climbed 2.25 percent.

Automotive and internet stocks also advanced. Hyundai Motor, the country’s largest automaker, rose 1.32 percent, and Naver, the leading internet portal operator, gained 1.17 percent.

SK hynix, the second-largest chipmaker, added 1.66 percent. However, market heavyweight Samsung Electronics dipped 0.49 percent.

Samsung Biologics, a major biotech firm, and Hanwha Aerospace, a top defense systems manufacturer, saw declines of 0.19 percent and 0.75 percent, respectively.

As of 9:15 a.m., the South Korean won weakened against the U.S. dollar, trading at 1,370.05 won, down 2.25 won from the previous session’s close. (Yonhap)