KOSPI Slips as Tariff Deadline Nears

The benchmark KOSPI fell 0.15% to around 1,381 on Monday, retreating from the previous week’s gains ahead of high-stakes trade negotiations. Finance Minister Koo Yun-cheol is scheduled to meet with US Treasury Secretary Scott Bessent on Thursday in a final effort to secure a resolution before the implementation of reciprocal tariffs on August 1. Market uncertainty has escalated following the abrupt cancellation of previously arranged talks by the US side last week. Concerns over the broader economic impact of the tariffs have gained traction, particularly given South Korea’s structural reliance on manufacturing and exports. In 2023, manufacturing comprised 27.6% of South Korea’s gross domestic product (GDP), nearly double the OECD average of 15.8%, underscoring the economy’s sensitivity to trade disruptions. On the corporate sector, notable losses were from Hana Financial Group Inc. (-7.46%), Shinhan Financial Group (-4.07%), Doosan Enerbility (-2.28%), and SK Hynix (-0.94%).