Cospi closed 1.7% down on Wednesday, up from July to more than 20%. The Korean won the lowest after the financial crisis, which changed the trade due to a low change. The yield on Korea’s 10 -year bond increased the next day, with five basis points rising.
Global funds sell shares in the export-based market as trade tensions intensify. South Korean assets have also been made by political upheaval by former President Yun Suk Yeal’s short -term Marshall Law efforts in early December.
Wednesday’s weakness was amid widespread risk in Asia, and despite Trump’s comment that the prospect of a trade deal with South Korea was “good” after a phone conversation with acting President Han Duck-SU. Washington Shington is visiting the South Korean trade minister for lower rate negotiations.
Etmarkets.com
Mira Asset Securities Whose Market Strategist SEO Sang-Yang said the tariff will take on South Korea, especially on its semiconductor and Auto toe Industries, which is the country’s largest export engine.
According to Adam Ferrar, a senior analyst at Asia-Pacific at Asia-Pacific at Bloomberg Economics, South Korea hit the top 25% of global tariffs on AUT toe, steel and aluminum. The Bloomberg Economics trade team estimates, tariffs could reduce US exports by 50% and put a 2.5% of Korean GDP at risk.
According to the International Trade Administration of the US Commerce Department, the nation behind Mexico and Japan, the U.S. The third largest vehicle is the exporter. Korean authorities have unveiled a package of 3 trillion von ($ 2 billion) emergency funds to soften its auto industry.
Cospi is now 4.4% for 2025. It increased more than 10% a few weeks ago, ranked in the top -performing Asian equity benchmark.
Some analysts still see the market the worst in the result of tariffs.
“The US tariff policy towards Korea may seem harsh than expected, but Korea has a maneuver,” Morgan Stanley Strategists, including Jun Seok, wrote in a note. “Policy and negotiations will require political stability. There is a possibility of constant instability for Cospi, but the potential will be avoided.”
Separately, FTSE Russell pushed the start date to include Korea’s government bonds in its main assistant debt index from November to April 2026.
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