Seoul shares extend winning streak to 6th day amid looming US tariff deadline
The benchmark Korea Composite Stock Price Index added 23.9 points, or 0.74 percent, to close at 3,252.47, extending its winning streak to a sixth session.
The reading marked the highest level since Aug. 9, 2021, when the index closed at 3,260.42.
Trade volume was moderate at 335.65 million shares worth 12.88 trillion won ($9.31 billion), with winners beating losers 474 to 406.
The index opened slightly higher, despite overnight losses on Wall Street, and extended gains further.
Foreign and institutional investors bought a net 580.58 billion won and 330.81 billion won worth of shares, respectively, while retail investors sold a net 984.91 billion won.
"As investors assess corporate earnings reports, differentiated stock movements within sectors are expected, depending on individual company performance," said Han Ji-young, a researcher at Kiwoom Securities.
Eyes are also on ongoing tariff talks between South Korea and the United States, with just two days remaining until the Aug. 1 deadline for a deal before the US starts imposing reciprocal tariffs, including a 25 percent duty on South Korean imports.
In the latest round of meetings, Finance Minister Koo Yun-cheol, Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo held two-hour talks with US Commerce Secretary Howard Lutnick in Washington on Tuesday.
Koo is scheduled to meet with US Treasury Secretary Scott Bessent in Washington on Thursday for a potential showdown, while Foreign Minister Cho Hyun also plans to meet with Secretary of State Marco Rubio.
Tech and auto shares led the overall market advance.
Market bellwether Samsung Electronics rose 2.83 percent to 72,500 won, and chip giant SK hynix added 0.38 percent to 263,500 won.
Major battery maker LG Energy Solution added 0.26 percent to 393,000 won on news that it signed a $4.3 billion contract to supply Tesla with lithium iron phosphate batteries for energy storage systems.
Leading pharmaceutical firm Samsung Biologics advanced 0.92 percent to 1.1 million won.
Top automaker Hyundai Motor surged 2.29 percent to 223,000 won, while its sister Kia spiked 4.45 percent to 110,400 won. Top financial firm KB Financial went up 1.35 percent to 112,800 won.
But defense giant Hanwha Aerospace sank 2.1 percent to 977,000 won on profit taking, and nuclear power plant manufacturer Doosan Enerbility skidded 2.15 percent to 63,700 won.
Leading shipbuilder HD Hyundai Heavy decreased 0.53 percent to 471,000 won, while No. 1 steelmaker POSCO sank 1.11 percent to 313,000 won.
The local currency was quoted at 1,383.1 won against the greenback at 3:30 p.m., up 7.9 won from the previous session. (Yonhap)
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Korea Herald
2 hours ago
- Korea Herald
[Wang Son-taek] Key points for a successful S. Korea-US summit
The upcoming South Korea-US summit scheduled for this month is poised to become a landmark diplomatic event in the history of the alliance — regardless of its outcome. Under President Donald Trump's renewed leadership, the United States is aggressively redrawing the international order. The administration's approach has discarded traditional norms of multilateral cooperation in favor of a transactional, unilateral model. At the heart of this shift is an escalating tariff war. South Korea has also felt the impact. In late July, Seoul and Washington reached a surprising and lopsided agreement: despite the Korea-US Free Trade Agreement, which originally guaranteed tariff-free trade, Korea will now face a 15 percent tariff on exports to the US. This concession was made to reduce Trump's initial demand of a 25 percent tariff. In exchange, Korea agreed to invest $350 billion in the United States and to import $100 billion worth of US energy products. These numbers are staggering. Unsurprisingly, this has shaken confidence in the alliance. Within South Korea, growing embarrassment and frustration have raised questions over whether the alliance is still grounded in mutual respect — or if it has devolved into an asymmetric arrangement driven solely by US pressure. In this context, the upcoming summit between President Lee Jae Myung and President Trump carries immense importance. Ideally, the two leaders would agree on ways to enhance the alliance and reduce uncertainty. But optimism must be tempered. Trump is a notoriously unpredictable figure. Since beginning his second term in January, he has grown even more inflexible in his positions. For many global leaders, meeting with Trump has become a nerve-wracking ordeal. In February, Ukrainian President Volodymyr Zelenskyy experienced a disastrous summit in Washington. During a 40-minute meeting, Trump, and Vice President JD Vance openly cornered Zelenskyy, accusing him of recklessness and dismissing his diplomatic appeals. In May, South African President Cyril Ramaphosa was subjected to a bizarre ambush at the White House. Trump unexpectedly raised unfounded claims about 'white genocide' in South Africa and used misleading footage to pressure Ramaphosa in front of the press. Diplomacy is built on mutual respect and reliable communications. Yet Trump's actions suggest a deliberate strategy of shaming foreign leaders to achieve domestic political gains. While history offers many examples of powerful states bullying weaker ones, Trump's overt and often theatrical humiliations of heads of state are without modern precedent. There is no guarantee that President Lee Jae Myung will be treated differently. Hoping for a summit that yields a comprehensive agreement may be overly ambitious. A successful summit may simply mean that the alliance remains intact and that relations between the two leaders do not fray. To achieve even this limited success, the South Korean government must be thoroughly prepared. First, anticipate Trump's theatricality. Trump has shown a pattern of using summits for spectacle. Some incidents, like the Ramaphosa ambush, were clearly premeditated. To avoid confrontation, South Korea should convey to the White House that there is no reason for hostility between the two sides. Second, while Trump has frequently harassed foreign leaders perceived as weak, he tends to respect strong leaders. He has openly expressed admiration for authoritarian figures like Putin, Xi Jinping and Kim Jong Un. This is not because of ideology, but because he associates strength with authority. President Lee should project confidence and national support — not arrogance, but firm resolve. Any perception that President Lee is weak could prompt Trump to treat him as prey, rather than a peer. Third, remember that Trump is not persuaded by logic — he is influenced by emotion. Many European leaders have learned that flattery often works where facts do not. While sycophancy is distasteful, directly contradicting Trump in public or humiliating him at the negotiating table is unwise. Managing his ego is not appeasement — it is strategic calibration. If a deal is reached, framing it as a product of Trump's leadership will likely help sustain momentum. In fact, this approach should apply in all diplomacy, not just with Trump. But in Trump's case, it is essential. Fourth, Trump thrives in highly orchestrated events where he is center stage and commands international attention. The 2018 Singapore summit with Kim Jong Un is instructive: when Trump perceived the summit as favorable, he was willing to engage and compromise. Similarly, Trump's attitude toward former President Moon Jae-in evolved. While initially skeptical during their first meeting in June 2017, Trump was noticeably more cooperative during the Seoul summit in November that year. In Seoul, Trump reportedly took a strong interest in visiting the Demilitarized Zone and warmed to President Moon. He showed that his attitude can shift when he feels respected or engaged in a dramatic setting. Fifth, Trump is eccentric, but still shrewd. His apparent rudeness is often a simple tactic to bolster his domestic image. His core concern is winning — especially on issues that matter to his base. If South Korea can identify areas of cooperation that align with Trump's domestic political agenda, those can be repackaged as victories for him while also serving Korean interests. One area of interest is shipbuilding. Trump has repeatedly emphasized revitalizing US manufacturing, particularly in industries like naval shipbuilding. South Korea could offer more specific ideas in this field. Moreover, emerging sectors such as artificial intelligence, semiconductors and green technology present opportunities for joint initiatives. The key is to shape these proposals so they appear as Trump's ideas or triumphs. In summary, direct confrontation must be avoided, while strategic praise should be deployed. President Lee must project charisma, not submission. Mutually beneficial programs should be framed as Trump's victories. Expectations for the summit should be lowered. Trump's diplomacy is erratic, but not inscrutable. With careful preparation and psychological foresight, the summit can avoid disaster — and perhaps even yield progress. In this high-stakes encounter, restraint, strategy and narrative control will be more valuable than policy details.
Korea Herald
13 hours ago
- Korea Herald
Celltrion's Q2 net falls 19.3% on provisions
Celltrion, a major South Korean biopharmaceutical company, said Wednesday its second-quarter net profit fell 19.3 percent from a year earlier due to provisions related to ongoing legal disputes. For the three months ended June 30, net profit declined to 63.3 billion won ($45.6 million) from 78.4 billion won in the same period last year, the company said in a regulatory filing. "We set aside provisions in preparation for potential compensation related to ongoing legal disputes. These provisions impacted our quarterly bottom line," a company spokesperson said, without elaborating. Operating profit more than tripled to 242.5 billion won from 72.4 billion won, while sales rose 9.9 percent to 961.5 billion won from 874.7 billion won. The company said increased global sales of its flagship biosimilars, including Remsima SC, Yuflyma and Vegzelma, supported quarterly earnings. These high-margin products accounted for 53 percent of total sales in the second quarter. In the first half of the year, net income surged 73 percent to 171.6 billion won from 99.2 billion won a year earlier. Celltrion expects strong earnings to continue in the second half, as it plans to gradually launch five new biosimilars -- Omlyclo, Avtozma, Eydenzelt, Stoboclo and Osenvelt -- in global markets later this year. The company aims to achieve 5 trillion won in annual sales this year, up 40 percent from a record 3.56 trillion won last year. Celltrion has significantly expanded its global biosimilar portfolio, with the number of approved products rising from six to 11. It plans to commercialize 22 biosimilar products by 2030, when the global market is projected to grow to 261 trillion won from 138 trillion won this year. (Yonhap)
Korea Herald
16 hours ago
- Korea Herald
Seoul shares close nearly flat with mixed sector performance
South Korean stocks finished nearly unchanged Wednesday as gains in tourism and retail shares offset losses in semiconductors and pharmaceuticals. The local currency slipped against the US dollar. The benchmark Korea Composite Stock Price Index climbed 0.14 point, or 0 percent, to close at 3,198.14. Trade volume was a little slim at 319.8 million shares worth 10.7 trillion won ($7.7 billion), with winners outnumbering losers 644 to 236. Foreigners and institutions sold a net 67.5 billion won and 53.7 billion won worth of local shares, respectively, while retail investors purchased a net 46.9 billion won. Tourism and retail shares led the daily gain following the government's decision to start a visa waiver program with Chinese group tourists from next month. Hotel Shilla jumped 4.79 percent to 49,250 won, and Shinsegae increased 3.27 percent to 176,900 won. Major cosmetics firm AmorePacific rose 1.26 percent to 128,800 won, and Kolmar Korea gained 2.79 percent to 99,400 won. Energy shares were also among the winners, as Doosan Enerbility mounted 2.31 percent to 66,300 won and the state-run Korea Electric Power Corp. vaulted 7.44 percent to 41,150 won. However, chip and drug stocks went south as Trump said again he would announce new tariffs on those imports soon. Chip giant Samsung Electronics fell 1.57 percent to 68,800 won, and its rival SK hynix retreated 1.9 percent to 258,500 won. SK Biopharmaceuticals tumbled 8.89 percent to 101,500 won, and Samsung Biologics dropped 1.9 percent to 1,031,000 won. The local currency was quoted at 1,389.5 won against the greenback at 3:30 p.m., down 1.2 won from the previous session. (Yonhap)
