FX.co ★ South Korea Shares Dip as Chip and Pharma Stocks Fall

The KOSPI index declined by 0.4% to approximately 3,185 on Wednesday, interrupting a two-day upward trend, due to renewed worries about U.S. tariffs targeting semiconductor and pharmaceutical imports. On Tuesday, President Trump announced the introduction of a "small tariff" on pharmaceutical imports, which is set to rise incrementally over the next few years. Additional tariffs on semiconductors are anticipated in the coming days. The initial sell-off was primarily driven by semiconductor stocks, with Samsung Electronics dropping by 1.9% and SK Hynix experiencing a 2% decrease. Stocks in the pharmaceutical sector also faced pressure, as evidenced by Samsung Biologics declining by 2% and Celltrion decreasing by 0.6%. In response, South Korea's Finance Ministry has established a task force aimed at assisting companies in managing the impact of the tariffs and seeking new market opportunities. Additionally, the ministry has committed to providing short-term economic stimulus and long-term technological support to enhance competitiveness. In the broader market context, U.S. stock indices ended the day lower as concerns about the economic repercussions of President Trump's trade policies loomed. Specifically, the Dow Jones Industrial Average saw a decline of 0.1%, while the Nasdaq Composite dropped by 0.7%.