KOSPI Plunges Over 2% on Trump Tariff Shock... Samsung Electronics, Hyundai Motor Weaken

Secondary Battery Stocks Including LG Energy Solution Also Decline

The KOSPI opened down over 2% on the 3rd due to the shock of tariff impositions by the Donald Trump U.S. administration.

Due to increased uncertainty in the domestic stock market caused by Trump's tariff war, the KOSPI index plunged by up to 3% during the trading session on the 3rd. The status board in the dealing room of Hana Bank in Jung-gu, Seoul, displays the KOSPI index and the KRW/USD exchange rate. On that day, the KOSPI opened at 2,468.74, down 48.63 points (1.93%) from the previous session, and the KRW/USD exchange rate started at 1,446.0 won, up 13.3 won. Photo by Jo Yong-jun

As of 9:38 a.m. that day, the KOSPI index was trading at 2449.81, down 2.68% from the previous trading day. Institutional and foreign investors sold net amounts of 287 billion KRW and 254.3 billion KRW respectively, while individual investors bought a net amount of 517.1 billion KRW.

Most of the top market capitalization stocks on the KOSPI are declining. These include Samsung Electronics (-2.67%), SK Hynix (-4.72%), LG Energy Solution (-4.55%), Samsung Biologics (-2.87%), Hyundai Motor (-2.67%), and Kia (-4.31%). Kakao (0.65%), classified as a beneficiary of the Chinese AI startup DeepSeek, is rising.

By sector, all sectors are showing weakness, including Electronics (-5.18%), Electricity (-4.98%), Chemicals (-4.68%), Steel (-3.93%), and Oil & Gas (-3.60%).

The trade dispute concerns stemming from President Trump’s announcement to impose additional tariffs of 25% on Canada and Mexico and 10% on China starting from the 4th are interpreted as having affected the domestic stock market as well. Ji-won Kim, a researcher at KB Securities, analyzed, “The impact related to President Trump’s signing of the tariff imposition executive order is inevitable, and the shock effect of DeepSeek is also likely to continue.”

At the same time, the KOSDAQ index recorded 707.15, down 2.90% from the previous session. Institutions sold 73.1 billion KRW, foreigners sold 104.8 billion KRW, and individuals bought a net amount of 182.8 billion KRW. Most of the top market capitalization stocks such as Alteogen (-2.96%), EcoPro BM (-7.63%), and Ligand Chem Bio (-4.27%) are showing a downward trend.