FX.co ★ KOSPI Slips as Tariff Deadline Nears

On Monday, the benchmark KOSPI index experienced a slight decline of 0.15%, settling around 1,381. This drop followed the gains recorded in the previous week, as the market anticipated critical trade discussions. Finance Minister Koo Yun-cheol is set to rendezvous with U.S. Treasury Secretary Scott Bessent on Thursday in a last-ditch attempt to avert the implementation of reciprocal tariffs set for August 1. Market apprehension has heightened after the U.S. unexpectedly cancelled scheduled talks last week, raising expectations of potential economic repercussions from the tariffs. Such concerns are particularly pressing given South Korea's heavy dependency on manufacturing and exports. In 2023, manufacturing accounted for 27.6% of South Korea’s GDP—almost twice the OECD average of 15.8%—highlighting the economy's vulnerability to trade disturbances. In the corporate arena, significant losses were observed in Hana Financial Group Inc. (-7.46%), Shinhan Financial Group (-4.07%), Doosan Enerbility (-2.28%), and SK Hynix (-0.94%).