South Korean markets plunge as US tariff fears intensify
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South Korean stocks suffered a sharp selloff on Monday as fears mounted over potential US tariffs on Korean exports, following Trump’s aggressive trade measures against Canada and Mexico. The Kospi Index dropped 2.52%, while the Kosdaq slid 3.36%, reflecting broad market unease.
Tech Stocks Lead the Decline
Major South Korean tech firms were hit hard amid rising trade tensions. LG Electronics slumped over 7%, posting its worst session in months Samsung Electronics dropped nearly 3%, as investors braced for policy uncertainty SK Hynix saw a 4.17% decline, extending recent losses in semiconductor stocks
Mixed Economic Data: Weak Retail Sales, Strong Industrial Output
The latest economic data from South Korea painted a mixed picture. Retail sales contracted 3.3% YoY in December, extending the 2.2% decline from November On a monthly basis, retail activity fell 0.6%, reflecting weak consumer demand Industrial production rebounded 1.4% YoY, reversing the 0.3% drop recorded in November Manufacturing output surged 5.5% YoY, up from 0.4% in November, showing strength in the sector
Market Outlook: Uncertainty Weighs on Sentiment
With Trump’s trade policy targeting major US trading partners, investors fear that South Korea could be next in line for tariffs. Market sentiment remains fragile, particularly for export-driven sectors like technology and semiconductors.
While industrial recovery signals resilience, weak retail data highlights domestic economic headwinds. Until there is clarity on US trade policy, South Korean equities may struggle to regain momentum, with further downside risks for tech and export-heavy industries.
Tech Stocks Lead the Decline
Major South Korean tech firms were hit hard amid rising trade tensions. LG Electronics slumped over 7%, posting its worst session in months Samsung Electronics dropped nearly 3%, as investors braced for policy uncertainty SK Hynix saw a 4.17% decline, extending recent losses in semiconductor stocks
Mixed Economic Data: Weak Retail Sales, Strong Industrial Output
The latest economic data from South Korea painted a mixed picture. Retail sales contracted 3.3% YoY in December, extending the 2.2% decline from November On a monthly basis, retail activity fell 0.6%, reflecting weak consumer demand Industrial production rebounded 1.4% YoY, reversing the 0.3% drop recorded in November Manufacturing output surged 5.5% YoY, up from 0.4% in November, showing strength in the sector
Market Outlook: Uncertainty Weighs on Sentiment
With Trump’s trade policy targeting major US trading partners, investors fear that South Korea could be next in line for tariffs. Market sentiment remains fragile, particularly for export-driven sectors like technology and semiconductors.
While industrial recovery signals resilience, weak retail data highlights domestic economic headwinds. Until there is clarity on US trade policy, South Korean equities may struggle to regain momentum, with further downside risks for tech and export-heavy industries.