South Korean equities saw a mild pullback on Tuesday, with the benchmark KOSPI Index slipping 0.17% to 3,196.53, as investors booked profits following a strong rally that pushed the index to a near four-year high on Monday.
Automotive stocks were among the main laggards, with Hyundai Motor dropping 2.53% and Kia Motors falling 2.62%, reflecting cautious sentiment in the sector after recent gains. While Samsung Electronics climbed 0.80%, SK Hynix shed 3.17%, capping gains in the tech-heavy index.
Analysts at Kiwoom Securities noted, “The KOSPI is expected to remain around the 3,200 level, where buying and selling pressures persist.”
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Among 932 stocks traded, 283 advanced, while 606 declined. Foreign investors were net sellers, offloading shares worth 44.5 billion won ($32.1 million)—a sign of waning momentum amid external trade tensions.
In the currency market, the Korean won eased slightly, settling at 1,383.3 per dollar. Bond markets remained relatively stable, with three-year treasury yields inching up to 2.474% and the 10-year yield easing to 2.884%.
The decline comes amid global concerns around escalating trade rhetoric from U.S. President Donald Trump, who has proposed a 30% tariff on EU and Mexican imports starting August 1, triggering uncertainty in global markets.
While tech stocks and green energy prospects continue to support select sectors, South Korea’s automakers and exporters remain vulnerable to global trade policy shifts.
