Seoul Shares Close Above 5,000 Points Amid Tariff Threat
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Key Facts
- KOSPI closes above 5,000 for first time The benchmark Korea Composite Stock Price Index jumped 135.26 points, or 2.73 %, to end the session at 5,084.85, marking the first close above the landmark level [1].
- Heavy trading volume fuels market rise Traders exchanged 472 million shares worth about 28 trillion won (US$19.4 billion), with the number of losing stocks (472) outpacing winners (410) [1].
- Foreign investors net buy while retail sell Foreign buyers added a net 850 billion won, institutions purchased a net 232 billion won, and domestic retail investors sold a net 1 trillion won [1].
- Trump’s tariff warning triggers brief dip but market stays resilient After President Donald Trump announced plans to raise “reciprocal” and auto tariffs on South Korean goods to 25 % from 15 %, the won slipped to 1,446.2 per dollar, yet investors treated the move as short‑term noise [1].
- Semiconductor giants hit record highs Samsung Electronics rose 4.87 % to a record 159,500 won and SK hynix surged 8.7 % to an all‑time high of 800,000 won, leading the tech rally [1].
- Bond yields ease as investors seek safety The yield on three‑year Korean Treasury bonds fell 0.2 basis point to 3.094 %, and the five‑year benchmark slipped 0.5 basis point to 3.377 % [1].
Who Said What
- Han Ji‑young, researcher at Kiwoom Securities: “As winning parliamentary approval (on the trade deal) is a matter of time, the hike in tariffs announced by Trump is considered a noise having a limited impact on the market.”
- Seoul’s presidential office: Stated it will convey its commitment to the United States on implementing the trade deal and will respond calmly to the tariff announcement.
Some Context
- KOSPI (Korea Composite Stock Price Index): South Korea’s main stock market index, tracking the performance of the country's listed companies.
- Reciprocal tariffs: Trade duties imposed by one country on imports from another, matched by equivalent duties on the other country’s exports.
- Kiwoom Securities: A major South Korean brokerage firm that provides market research and trading services.
- Samsung Electronics and SK hynix: The two largest semiconductor manufacturers in South Korea, whose stock movements heavily influence the broader market.
- Treasury bond yields: The interest rates on government debt; lower yields indicate higher bond prices and often reflect investor demand for safety.