South Korean shares slide 3% on tariff and tax woes
South Korean shares dropped 3% on Friday and were on track for their biggest fall in nearly four months, as the United States announced new tariffs on dozens of trading partners and domestic tax code revisions reduced hopes for market reforms.
The benchmark KOSPI was down 99.78 points, or 3.07%, at 3,145.66, as of 0129 GMT, set to post its biggest daily percentage fall since April 7.
U.S. President Donald Trump signed an executive order on Thursday imposing reciprocal tariffs on U.S. imports from dozens of countries, including a 15% tariff on South Korea, lower than a threatened 25% but higher than the current 10%.
South Korea's government put forward plans on Thursday to roll back recently imposed tax cuts, such as those on corporate income and stock investments.
'It could have a critical impact on the sincerity of the administration's policy to revitalise the stock market and resolve the Korea Discount,' said Han Ji-young, an analyst at Kiwoom Securities.
Meanwhile, South Korea's exports rose for the second straight month in July on strong chip demand and shipments being moved forward ahead of higher U.S. tariffs.
Among index heavyweights, chipmaker Samsung Electronics fell 1.40%, while peer SK Hynix lost 5.12%. Battery maker LG Energy Solution slid 1.05%.
Hyundai Motor and sister automaker Kia Corp were little changed, while Steelmaker POSCO Holdings shed 4.38%.
Securities firms plunged 5.08%, while financial groups fell 3.86%.
Of the total 932 traded issues, only 36 shares advanced, while 880 declined.
Foreigners were net sellers of shares worth 317.8 billion won ($227.06 million).
The won was quoted at 1,397.5 per dollar on the onshore settlement platform, 0.39% lower than its previous close at 1,392.0.
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