FX.co ★ South Korean Shares Remain at 17-Month Low

The KOSPI index experienced a decline of 1.7%, closing at 2,294 points on Wednesday, marking its lowest point in seventeen months. This drop coincides with the implementation of the aggressive reciprocal tariffs by U.S. President Donald Trump. These tariffs, set at 25%, are exerting pressure on South Korea's export-reliant economy. In response to the impact of these tariffs, the South Korean government introduced emergency support measures for the automotive industry, which include financial aid for car manufacturers, tax incentives, and subsidies to boost domestic demand. Additionally, the government committed to strengthening dialogue with the United States to resolve these trade issues. On the economic front, South Korea saw a slight increase in its seasonally adjusted unemployment rate, which rose to 2.9% in March 2025, up from 2.7% the previous month. Significant stock declines were observed in companies such as Celltrion (-5.2%), SK Hynix (-2.9%), Hanwha Aerospace (-1%), LG Energy Solution (-0.9%), and Samsung Electronics (-0.8%).