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Kospi drops as auto tariffs fuel fears

Published: 27 Mar. 2025, 16:36

KIM JU-YEON
[email protected]

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,607.15 points on March 27, down 36.79 points, or 1.39 percent, from the previous trading session. [NEWS1]

Shares ended almost 1.5 percent lower Thursday as concerns regarding a global trade war reignited after the U.S. administration announced its plan to impose tariffs on all imported cars. The won gained ground against the dollar.

The Kospi slid 36.79 points, or 1.39 percent, to 2,607.15.

Trade volume was a bit slim at 397.8 million shares worth 7.6 trillion won ($5.2 billion), with losers sharply outnumbering winners 609 to 279.

Institutions unloaded 315.2 billion won worth of local shares, while foreigners and retail investors purchased 87.7 billion won and 119.7 billion won, respectively.

Overnight, major U.S. indexes lost ground, with the Nasdaq composite sliding 2.04 percent, as Nvidia, Tesla and other blue chip tech shares went sharply down.

U.S. President Donald Trump's announcement of 25 percent auto tariffs sapped investors' appetites, according to experts, mounting concerns that the move could deal a blow to the global automotive market and further escalate tensions in global trade.

Earlier in the day, Trump signed a proclamation to impose the new tariffs on foreign-made cars, light trucks and parts, such as engines and transmissions. They will take effect April 2, with the government set to start collecting them the following day.

In Seoul, automakers took a direct hit, with Hyundai Motor plunging 4.28 percent to 212,500 won and its sister Kia sliding 3.45 percent to 97,900 won.

Hyundai Mobis, an auto parts-making affiliate of Hyundai Motor, also shed 2.1 percent to 279,500 won.

SK hynix shot down 3.27 percent to 207,000 won, tracking an overnight slump of U.S. AI chip giant Nvidia, which lost 5.74 percent. Samsung Electronics, on the other hand, rose 0.65 percent to 61,800 won.

Naver and Kakao pulled back more than 3 percent to 197,800 won and 41,600 won, respectively.

Shipbuilder Hanwha Ocean also shot down 4.12 percent to 67,500 won, and rival HD Hyundai Heavy Industries plummeted 3.99 percent to 276,500 won.

The local currency was trading at 1,465.3 won against the greenback at 3:30 p.m., down 1 won from the previous session.

Bond prices, which move inversely to yields, ended lower. The yield on three-year government bonds gained 0.4 basis points to 2.62 percent, and the return on the benchmark 10-year U.S. government bonds rose 3.4 basis points to 4.35 percent.

BY KIM JU-YEON, YONHAP [[email protected]]