Stock prices in Seoul peak at a four-year high, defying uncertainties surrounding US tariffs
In a significant development, South Korea and the United States have reached a trade agreement on July 30, 2025. The deal, which was finalized just before the August 1 deadline, is expected to have a positive impact on South Korea's economy and stock market.
Under the terms of the agreement, South Korea has pledged to invest $350 billion in the US and lower tariff barriers. The commitment includes a $100 billion purchase of energy products, aiming to address contentious issues like unimpeded imports of agricultural products and removing regulations on US online platforms.
The agreement, seen as a political win for South Korean President Lee Jae-myung, comes after last-minute efforts by top South Korean business leaders, including Samsung's chairman, to finalize the deal.
The news of this trade agreement has triggered significant market attention, particularly given the involvement of major corporate figures like Samsung's chairman in US negotiations. The commitment to securing favorable trade terms could positively affect South Korea’s export-driven economy and stock market performance.
On the stock market front, several South Korean companies saw significant gains following the announcement. Samsung Biologics advanced 1.97 percent to 1.09 million won, Samsung Electronics rose 0.28 percent to 70,600 won, and Doosan Enerbility climbed 2.52 percent to 65,100 won.
Other notable gainers include LG Energy Solution, which surged 3.02 percent to 392,000 won, HD Hyundai Heavy, which jumped 1.94 percent to 473,500 won, and Kia, which gained 0.19 percent to 105,700 won.
However, not all stocks saw gains. Hyundai Motor shed 0.23 percent to 218,000 won, while Hanwha Ocean lost 0.82 percent to 96,800 won.
The benchmark Korea Composite Stock Price Index closed at 3,230.57 on Tuesday, marking a 0.66% increase and a five-session winning streak. The index opened lower due to investor anticipation of key developments in tariff talks, but soon turned higher due to strong foreign buying.
Trade volume was moderate, with 369.74 million shares worth 12.66 trillion won (US$9.09 billion) traded.
According to Han Ji-young, a researcher at Kiwoom Securities, the domestic stock market is expected to continue showing sectoral divergence amid a wait-and-see stance ahead of a tariff deal.
The trade deal effectively averts steep tariffs on South Korean goods and should stabilize related Korean stocks by reducing trade uncertainty. The agreement is a step towards strengthening economic ties between South Korea and the US.
[1] Yonhap News Agency [3] Reuters
- The trade agreement between South Korea and the United States, following last-minute efforts from top South Korean business leaders, including Samsung's chairman, is expected to have a positive impact on the finance sector, particularly the stock market in general-news.
- The commitment to securing favorable trade terms, as outlined in the agreement, could influence politics, as it involves a $350 billion investment in the US and lower tariff barriers, which will be closely watched by finance and industry experts in general-news.
