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19h ago

South Korean Stocks Drop 2% as Investors Lock In Gains Before U.S. Tariff Deadline

Trade Minister Yeo Han-koo travels to Washington for last-minute negotiations before the U.S. reciprocal tariff suspension expires July 8

Ruling and opposition lawmakers pass a bill during a plenary session of the National Assembly in Seoul on July 3, 2025, that calls for a partial revision of the Commercial Act that would expand the fiduciary duty of corporate board members to all shareholders. (Yonhap)
This photo shows a dealing room of Hana Bank in Seoul on July 3, 2025. (Yonhap)
Officials work at a dealing room of Hana Bank in Seoul on July 4, 2025. (Yonhap)
Officials work at a dealing room of Hana Bank in Seoul on July 3, 2025. (Yonhap)

Overview

  • The KOSPI fell 61.99 points, or 1.99 percent, to close at 3,054.28 on July 4 as investors booked profits after a recent rally
  • Thursday’s surge to 3,116.27 marked a near four-year high driven by a U.S.–Vietnam tariff agreement and National Assembly approval of Commercial Act reforms
  • Market focus has shifted to the July 8 expiration of a 90-day suspension on 25 percent reciprocal U.S. tariffs, with Trade Minister Yeo Han-koo en route to Washington
  • Institutional investors led the sell-off by net selling 444.03 billion won, while retail and foreign investors net bought 257.06 billion and 162.27 billion won respectively
  • The South Korean won weakened to 1,362.3 won per dollar at market close on July 4, reflecting growing uncertainty over U.S. trade policy