SEOUL, January 27 (AJP) –Stocks were undisturbed in their growth momentum while the Korean won gave up earlier gains against the U.S. dollar as the Korean financial markets weighed the gravity of the overnight social-media threat by President Donald Trump to reinstate 25-percent tariffs on selected South Korean exports including automobiles.
As of 10:23 a.m. Seoul, KOSPI rose 0.76ercent to 4.987.03 smaller KOSDAQ up 0.93 percent at 1,074.64. The won was mildly affected, with the U.S. dollar rising 1.6 won to 1,449.60 won.
In a post on his Truth Social platform late Sunday, Trump said he would raise tariffs on South Korean products — including autos, lumber and pharmaceuticals — from 15 percent to 25 percent, citing Seoul’s failure to ratify what he described as a “historic trade agreement.”
“Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%,” Trump wrote. He did not specify when the higher tariffs would take effect.
Trump said the move followed South Korea’s failure to ratify a trade package he said was reached with President Lee Jae Myung on July 30, 2025, and reaffirmed during his visit to Korea in late October.
Shares of Hyundai Motor, which would be among the most directly affected, fell as much as 4 percent earlier in the session but later pared losses to trade down just 0.1 percent, as Seoul authorities moved quickly to assess potential countermeasures.
The Korea Pharmaceutical and Bio-Pharma Manufacturers Association said the impact on the industry is likely to be limited, noting that relatively few Korean drugmakers have significant direct exposure to the U.S. market. It added that companies with U.S. exposure have already secured alternative arrangements, including local contract manufacturing or acquisitions of production facilities, to mitigate risks. The pharmaceutical index slipped 0.8 percent.
Defense and aerospace shares also edged lower, with Hanwha Aerospace down 0.48 percent at 1,256,000 won.
Shipbuilders showed mixed performance. HD Hyundai Heavy Industries fell 2.98 percent to 587,000 won, while Hanwha Ocean gained 0.86 percent to 141,000 won.
In regional markets, Japan’s Nikkei 225 slipped 0.12 percent to 52,819.94, as investors monitored potential spillover effects should Washington revisit similar tariff arrangements with Tokyo.
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