FX.co ★ South Korean Shares Extend Losses on Tariff Uncertainty

The KOSPI index declined by 0.8% to approximately 4,845 on Wednesday, marking its second consecutive session of losses. This downturn was primarily driven by persistent uncertainty surrounding US tariff policies, which have negatively impacted market sentiment. Export-oriented companies showed caution as the US Supreme Court once again deferred a decision on the legality of "reciprocal" tariffs, leaving potential duties on Korean exports unresolved. This, in conjunction with ongoing foreign investor selling, prompted selective profit-taking and reduced market activity beyond the technology sector. The downturn was particularly pronounced for companies such as LG Energy Solution, which fell by 2.2%, Hanwha Aerospace by 1.3%, HD Hyundai Heavy Industries by 2.2%, and Doosan Enerbility by 3.7%. Conversely, semiconductor giants Samsung Electronics and SK Hynix demonstrated resilience, climbing by 2.6% and 0.4% respectively, buoyed by expectations of a prolonged upcycle in the chip sector fueled by AI demand. Additionally, Hyundai Motor and Kia Corporation showed significant gains, rising by 8.8% and 3.7% respectively.