Weekly Recap: KOSPI Slides Nearly 4% As US Tariffs, Rate Jitters Rattle Investors
Market sentiment soured after the US slapped fresh tariffs on a group of Asian economies, including a 15% duty on South Korean goods, raising fears of renewed pressure on the country's key export sectors.
At the same time, disappointing US employment figures tempered hopes for near-term interest rate cuts by the Federal Reserve, putting further pressure on risk assets globally. South Korea's high-beta market reacted sharply, with major names like Samsung Electronics and SK Hynix sliding over the week.
Domestic sentiment was also dented by debate over proposed tax changes that could affect capital gains, prompting retail outflows.
Despite a strong rebound in recent months, the KOSPI had risen over 35% since April — the latest external shocks have halted the rally. Analysts now expect the index to enter a period of consolidation as investors weigh trade negotiations and potential policy support from the Korean government.
Outlook: Volatility is expected to remain elevated as markets await clarity on global trade policies and local tax reform. All eyes are now on Seoul's response to the economic fallout.
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