FX.co ★ South Korean Shares Decline

On Monday, the KOSPI benchmark declined by 0.2% to approximately 2,690 points during midday trading, continuing its downward trend from the previous session as market participants evaluated the ongoing global trade tensions. President Donald Trump announced last week the intention to increase tariffs on steel imports to 50%, effective June 4, while China accused the United States of breaching the trade truce agreed upon in May. Domestically, investors reviewed various economic data, noting that South Korea's trade surplus increased to USD 6.94 billion in May 2025, marking the largest surplus since June 2024. This rise occurred as exports decreased by 1.3%, but were outpaced by a sharper 5.3% decline in imports. Meanwhile, the manufacturing sector continued its contraction for the fourth consecutive month. In the corporate arena, significant losses were observed among automakers and financial firms, including KB Financial Group (-3.6%), Shinhan Financial Group (-4%), Kia Corporation (-1%), and Hyundai Motor (-8%). However, these declines were partially countered by gains in the semiconductor sector, with Samsung Electronics rising by 0.8% and SK Hynix by 1.2%.