[Market Focus] Auto Stocks Rally on Hopes for Korea-U.S. Tariff Deal

Hyundai Motor Company and Kia are showing strong performance amid expectations of a resolution in the Korea-U.S. tariff negotiations.

As of 9:11 a.m. on October 16, Hyundai Motor Company was trading at 241,000 won on the Korea Exchange, up 17,500 won (7.83%) from the previous day. Kia was trading at 110,800 won, up 7,000 won (6.74%).

It appears that auto stocks are experiencing a significant rally for the first time in a while, as the tariff negotiations that have been holding back the sector are expected to conclude soon.

Scott Besant, U.S. Secretary of the Treasury, projected that trade negotiations with Korea could be finalized within the next 10 days. At a press briefing held at the Treasury Department in Washington, D.C. on the 15th (local time), Secretary Besant was asked about the possibility of resolving differences regarding the details of Korea's promised investments in the U.S. He stated, "I am confident that the differences can be resolved," and added, "We are currently in discussions. We expect something within the next 10 days." Secretary Besant also said in media interviews prior to the press conference that the trade negotiations with Korea had entered their final stage.

Gu Yooncheol, Deputy Prime Minister and Minister of Economy and Finance, who arrived in the U.S. on this day, also commented on the Korea-U.S. trade negotiations, saying, "We are continuing to coordinate at a rapid pace."