[Special Stock] Hyundai Motor and Kia Fall About 3%... Mutual Tariffs and Short Selling Double Whammy

Both Hyundai Motor Company and Kia stocks are showing weakness. Despite the group announcing a $21 billion (approximately 30.8448 trillion KRW) investment in the United States, concerns over export damage have increased due to the overlapping automobile tariffs and reciprocal tariffs starting next month. Additionally, the initiation of short selling is dragging down the entire domestic market.

As of 10:06 AM on the 31st, Hyundai Motor's stock price recorded 199,300 KRW, down 2.78% from the previous day. Kia also traded at 92,300 KRW at the same time, down 3.15%. Both leading domestic automobile stocks fell by around 3%.

Earlier, Hyundai Motor announced a large-scale investment in the U.S., and U.S. President Donald Trump responded positively, which seemed to alleviate tariff concerns. However, news that a 25% tariff will be imposed on all overseas-manufactured automobiles starting from the 2nd of next month has caused the downward trend to continue.

It is also negative news that President Trump announced that the reciprocal tariff policy, scheduled to be announced on the 2nd of next month, will apply to all countries. There are concerns that the combined effect of the 25% automobile tariff and reciprocal tariffs will inevitably damage exports to the U.S.

Hyundai Motor has also been hit by the resumption of short selling. Earlier this month, concerns arose that Hyundai Motor would become a target of short selling as the loan balance increased by 403.1 billion KRW.