On a Tuesday in late January 2026, South Korea's stock market climbed back with the force of a tide that had not yet forgotten its own undertow. The KOSPI rose 2.73% to close at 5,084.85, carried by chipmakers whose memory chips now power the artificial intelligence the world is building, even as the day before, President Trump had threatened to lift tariffs on Korean goods to 25%, citing a legislature he said was not honoring its trade pact. Investors who had first flinched at the threat soon returned, reading the storm as one more familiar weather of trade politics. Whether that patience pro
Korean Stocks Post Biggest Daily Gain in Three Weeks as AI Chip Rally Outweighs Trump Tariff Threat
Tech euphoria outweighed the tariff threat
On a Tuesday in late January 2026, South Korea's stock market climbed back with the force of a tide that had not yet forgotten its own undertow. The KOSPI rose 2.73% to close at 5,084.85, carried by chipmakers whose memory chips now power the artificial intelligence the world is building, even as the day before, President Trump had threatened to lift tariffs on Korean goods to 25%, citing a legislature he said was not honoring its trade pact. Investors who had first flinched at the threat soon returned, reading the storm as one more familiar weather of trade politics. Whether that patience proves wise depends on a question no one can yet answer: when the tariff would arrive, and whether the envoy now headed to Washington can turn the threat back.
South Korean stocks closed Tuesday with their sharpest one-day climb in three weeks, a day after President Donald Trump threatened to raise tariffs on Korean goods to 25%. The KOSPI gained 135.26 points, or 2.73%, to finish at 5,084.85, its biggest single-day gain since January 5.
The threat came Monday. Trump said duties on South Korean imports tied to autos, lumber and pharmaceuticals would rise from 15% to 25%, accusing the South Korean legislature of "not living up" to its trade deal with Washington. The initial reaction was a 1% drop, but buyers quickly appeared, eager to hold a market that had been Asia's strongest performer in 2025 on the strength of artificial intelligence demand.
The rebound was led by the chipmakers that supply memory chips for AI data centers. SK Hynix jumped 8.70% to a record high, and Samsung Electronics rose 4.87%. Automakers, the sector most exposed to the tariff, endured a harder day. Kia had fallen as much as 6% before recovering most of that loss, and Hyundai and Hyundai Mobis also pared their declines.
Analysts said many investors have learned how tariff politics usually unfold, and few believe the threat will seriously damage corporate earnings. Seoul responded quickly, assuring Washington of its continued commitment to the trade deal and announcing that a senior trade envoy will soon meet U.S. Trade Representative Jamieson Greer.
Still, key questions remain. It is unclear when the higher tariff would take effect, or what exactly provoked the directive. Until the envoy's talks take place, the market's composure depends on the expectation that the threat will pass.
South Korean stocks closed Tuesday with their sharpest one-day climb in three weeks. The rise came a day after President Donald Trump threatened to raise tariffs on Korean goods to 25%. The KOSPI gained 135.26 points, or 2.73%, to finish at 5,084.85, its biggest single-day increase since January 5.
The tariff announcement came on Monday. Trump said he was lifting duties on South Korean imports into the United States tied to autos, lumber and pharmaceuticals from 15% to 25%. He accused South Korea's legislature of "not living up" to its trade deal with Washington.
The first reaction was a drop. The benchmark fell 1% as the news landed. But the dip drew buyers who wanted exposure to the market that performed best in Asia in 2025, a position it earned on surging demand for technology stocks tied to artificial intelligence.
The recovery was driven by the two chipmakers that dominate memory chips used in AI-linked data centers. Samsung Electronics rose 4.87%. SK Hynix jumped 8.70% and closed at a record high.
The automakers, the sector most directly exposed to the tariff, had a rougher day, though they clawed back much of their early losses. Hyundai Motor closed down 0.81%. Kia finished 1.1% lower after falling as much as 6% earlier in the session. Hyundai Mobis ended down 1.1%, having dropped as much as 5.7% during the day.
The won followed a similar path. As of 0832 GMT it was down 0.3% at 1,447.9 per dollar, having cut an initial loss of 0.6%. On Monday the currency had touched a near one-month high.
Lee Sung-hoon, an analyst at Kiwoom Securities, said some investors treated the day as a chance to buy the dip, since many who missed the recent rally had been waiting for a correction. He added that market participants know how tariff politics tend to play out, so few see this as something that could actually hurt corporate earnings.
Seoul moved quickly on the diplomatic front. On Tuesday it sought to assure Washington that it remained committed to carrying out the trade deal. It also said it would soon send a top trade envoy to Washington to meet U.S. Trade Representative Jamieson Greer.
Two basic questions remain unanswered. It was not immediately clear when the threatened tariff increase would take effect, or what specifically prompted Trump's directive. Until the envoy's meeting with Greer, the market's calm rests on the assumption that the threat will fade, not on any announced change in policy.
Bemerkenswerte Zitate
Some investors took today as an opportunity to buy-on-the-dip as many who missed out on the recent rally were waiting for some kind of correction.— Lee Sung-hoon, analyst at Kiwoom Securities
Möchten Sie die ganze Geschichte?
Das Original lesen bei The Economic Times ↗
Technology