FX.co ★ South Korean Shares Follow Wall Street Lower

On Thursday, the benchmark KOSPI Index dipped by 0.6%, settling around 2,609 points. This drop counteracted the previous day's advances and mirrored Wall Street's losses overnight. The market reacted to concerns that former President Trump’s renewed advocacy for substantial tax cuts could exacerbate the federal deficit, potentially leading to increased Treasury yields. Additionally, sentiment was further dampened by apprehensions regarding South Korea's faltering economic outlook. Projections now estimate that the country's economy will expand by only 0.8% in 2025, lagging the global growth average by 1.9 percentage points—the largest discrepancy since the 1998 Asian financial crisis. Contributing to this pessimism are ongoing trade tensions and weak domestic demand stifling recovery efforts. Major stocks such as Samsung Electronics, SK Hynix, LG Energy Solutions, and Hyundai Motor experienced declines, registering losses of 0.9%, 0.9%, 1.3%, and 1.8% respectively. In contrast, the biopharmaceutical sector continued to perform well, with Samsung Biologics surging 7.1% following its announcement to divide its operations into separate manufacturing and investment divisions.