The won was quoted at 1,439.5 per dollar on the onshore settlement platform, 0.03% higher than its previous close at 1,440.0.South Korean shares ended lower on Tuesday, erasing early gains, on worries about U.S. President Donald Trump's tariff and electric-vehicle (EV) policies. The benchmark KOSPI closed down 2.02 points, or 0.08%, at 2,518.03, after rising more than 1% to the highest level since mid-November.
Trump said on the first day of his second presidency that he was considering imposing 25% tariffs on imports from Canada and Mexico next month. "The market fell on Trump's tariffs comments. It is inevitable to see heightened volatility for the time being with nothing decided yet," said Seo Sang-young, an analyst at Mirae Asset Securities. "Investors, when they started trading early morning, were relieved that there was no comment specifically mentioning tariffs."
South Korea's acting president Choi Sang-mok said the government would review response measures to Trump's proposed policies, particularly on tariffs and electric vehicles. Battery makers dropped, with LG Energy Solution losing 4.3% after Trump revoked the previous Biden administration's executive order on EVs.
The shipbuilding sector, on Trump's radar for cooperation, rallied, with HD Hyundai Mipo soaring 10% and Hanwha Ocean gaining 6%. Hyundai Motor, which has operations in Mexico, fell 0.96%. Of the total 944 traded issues, 388 shares advanced, while 487 declined. Foreigners were net sellers of shares worth 174.2 billion won (USD 120.92 million).
The won was quoted at 1,439.5 per dollar on the onshore settlement platform, 0.03% higher than its previous close at 1,440.0. In money and debt markets, March futures on three-year treasury bonds rose 0.14 points to 106.92. The most liquid three-year Korean treasury bond yield fell by 4.8 basis points to 2.576%, while the benchmark 10-year yield fell by 4.9 basis points to 2.815%.
