Seoul shares up for 4th day amid Israel-Iran conflict; won at 1-month low
South Korean stocks rose for the fourth consecutive day Thursday as investors were trying to digest recent developments in the Israel-Iran military conflict and the US Federal Reserve's rate freeze. The local currency was trading sharply lower against the US dollar.
The benchmark Korea Composite Stock Price Index added 5.55 points, or 0.19 percent, to close at 2,977.74, continuing its winning streak since Monday.
Trade volume was moderate at 427.3 million shares worth 13.5 trillion won ($9.8 billion), with losers slightly outnumbering winners 441 to 431.
Retail investors purchased 351 billion won worth of local shares, offsetting a combined 383.9 billion-won sell-off by foreigners and institutions.
Overnight, Wall Street closed mixed after the Fed decided to maintain its benchmark interest rate steady at the 4.25-4.50 percent range.
The Dow Jones Industrial Average went down 0.1 percent, and the S&P 500 fell 0.03 percent, while the tech-heavy Nasdaq composite went up 0.13 percent.
The Fed kept its projection for two rate cuts this year but showed a more cautious mode amid persisting uncertainties stemming from US President Donald Trump's administration's tariff policies.
Fed Chair Jerome Powell said uncertainties have come down after peaking in April, but tariffs are expected to heighten inflationary pressure and weigh on the US economy.
Investors' eyes were also on the escalating military conflict between Israel and Iran, with the Trump administration yet to decide whether to join Israel's attack on Tehran's nuclear facilities.
The KOSPI began lower due to such global uncertainties but turned higher as retail investors moved to buy shares in IT, defense and other sectors that have recently gained traction.
Naver, the operator of the country's biggest search engine, jumped 3.49 percent to 252,000 won, continuing its upward momentum created by Seoul's massive investment plan in artificial intelligence and global investment bank JP Morgan's favorable outlook on the company's future performance.
Kakao, the operator of the country's dominant mobile messenger, jumped 9.42 percent to 60,400 won, and Samsung SDS, a cloud provider, climbed 4.53 percent to 168,400 won, also on AI expectations.
Defense shares also rose big on the back of escalating tensions in the Middle East.
Industry leader Hanwha Aerospace gained 0.76 percent to 934,000 won, Poongsan shot up 17.02 percent to 126,500 won, Hyundai Rotem soared 7.89 percent to 212,000 won, and LIG Nex1 advanced 5.33 percent to 593,000 won.
On the other hand, market heavyweight Samsung Electronics shed 1 percent to 59,200 won, and its chipmaking rival SK hynix lost 0.2 percent to 246,000 won.
Major shipbuilder Hanwha Ocean lost 3.46 percent to 89,200 won, and game maker Krafton slid 5.75 percent to 360,500 won.
Automakers were mixed, with Hyundai Motor up 0.49 percent to 207,000 won and its sister Kia down 0.71 percent to 98,200 won.
The local currency was quoted at 1,380.2 won against the greenback at 3:30 p.m., sharply down 10.8 won from the previous session. (Yonhap)
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Korea Herald
3 hours ago
- Korea Herald
[Lee Byung-jong] President Lee's pragmatic diplomacy
Less than two weeks into office, President Lee Jae Myung is already busy shaping a new course for South Korea's foreign policy — one he describes as 'pragmatic diplomacy.' His packed diplomatic calendar signals both urgency and ambition. Earlier this week, he attended the G7 summit in Canada at the invitation of the host, marking South Korea's return to global diplomacy after six months of absence during the country's turbulent leadership transition. Later this month, he is scheduled to travel to the Netherlands to participate in the NATO summit as a representative of the alliance's Indo-Pacific partners. Despite criticism over the rushed pace and pending domestic challenges, Lee is determined to reestablish South Korea as a central player on the global stage. 'Democratic Korea is back,' declared national security adviser Wi Sung-lac. Still, many are asking: What does 'pragmatic diplomacy' actually mean in practice? Lee's approach marks a distinct departure from the 'values-based diplomacy' of his predecessor, Yoon Suk Yeol, who prioritized alliances with countries sharing democratic values. In contrast, Lee's strategy is rooted in flexibility and realpolitik — prioritizing economic interests and strategic outcomes over ideological alignment. In today's volatile geopolitical environment, with mounting tensions among global powers, Lee seems to be betting that ideological rigidity is a liability, not an asset. While the full contours of Lee's diplomatic doctrine are still emerging, his initial moves offer important clues. The order of his phone calls to world leaders in his first days in office has been particularly telling. As expected, his first call was to US President Donald Trump — a nod to the enduring importance of the South Korea-US alliance, especially on issues of trade and security. The 20-minute call reaffirmed the long-standing priority Korean presidents place on their alliance with Washington. More surprising was his second phone call — to Japanese Prime Minister Ishiba Shigeru. Coming from a liberal background, Lee had been expected by some to reach out to China's Xi Jinping next, following the pattern of previous liberal leaders like President Moon Jae-in. Lee has, in the past, been critical of Japan's stance on historical issues, leading many to doubt whether he would prioritize Tokyo early on. However, this decision was widely interpreted as a signal of Lee's practical mindset and willingness to improve ties with Japan despite lingering historical grievances. Lee's third call to Xi Jinping was hardly unexpected, given that China remains South Korea's largest trading partner. But his fourth and fifth calls did raise eyebrows: He spoke with the leaders of the Czech Republic and Vietnam, countries often overlooked in the early stages of diplomatic outreach by past presidents. His rationale, again, was pragmatic. The Czech Republic recently awarded a 26 trillion-won nuclear power plant construction deal to a South Korean bid — a hard-won contract that edged out fierce competition from France. Lee's outreach aims to solidify that economic relationship and possibly expand it. Vietnam, meanwhile, is South Korea's third-largest trading partner and the leading destination for Korean foreign investment, making it a natural choice for early engagement. The sequence of these conversations echoes one of Lee's key refrains: 'The economy is security, and security is the economy.' His decision to attend the G7 and NATO summits underscores this philosophy. At the G7, discussions focused heavily on global trade friction — particularly the fallout from President Trump's protectionist tariffs. With trade accounting for 80 percent of South Korea's GDP, these are matters Seoul cannot afford to ignore. His participation in the NATO summit is more delicate. Lee had previously expressed reservations about Korea getting too involved in European security matters, especially the war in Ukraine. However, Europe is now a growing market for South Korean defense exports. From that angle, attending the NATO meeting is less about ideology and more about ensuring access to new economic opportunities. But Lee's pragmatic diplomacy will soon face its toughest challenge: North Korea. A purely practical foreign policy could falter if Lee reverts to the liberal camp's traditional approach of engagement with Pyongyang at the expense of alignment with key allies. President Moon Jae-in, for example, pursued such a strategy, which strained Seoul's trilateral coordination with Washington and Tokyo. That fragile alliance, revitalized under President Yoon, President Biden, and former Japanese Prime Minister Kishida in the 2023 Camp David summit, could be tested once more — especially now that all three leaders have exited the political stage. Despite his calls for pragmatic diplomacy, Lee may find himself pulled back toward a more ideological, nationalistic foreign policy. Personnel choices offer early signs of this tension. National security adviser Wi Sung-lac is widely viewed as an advocate of strong alliances, particularly with the US and other democratic partners. But Lee's pick for National Intelligence Service chief, Lee Jong-seok — a former Unification Minister — is a well-known proponent of an independent foreign policy that places inter-Korean relations above external alliances. These two key advisers, representing opposing schools of thought, could end up pulling President Lee in divergent directions, risking confusion and inconsistency in policy execution. In short, President Lee's diplomatic approach shows promise in its economic focus and global engagement. His outreach to non-traditional partners and participation in key summits signal an intent to broaden South Korea's international standing. But this pragmatic posture will only succeed if it can maintain consistency and resist being derailed by ideological pulls — especially when it comes to North Korea. The balancing act between idealism and realism, between national pride and global cooperation, will define the credibility and effectiveness of Lee's foreign policy in the years to come.
Korea Herald
16 hours ago
- Korea Herald
Seoul shares up for 4th day amid Israel-Iran conflict; won at 1-month low
South Korean stocks rose for the fourth consecutive day Thursday as investors were trying to digest recent developments in the Israel-Iran military conflict and the US Federal Reserve's rate freeze. The local currency was trading sharply lower against the US dollar. The benchmark Korea Composite Stock Price Index added 5.55 points, or 0.19 percent, to close at 2,977.74, continuing its winning streak since Monday. Trade volume was moderate at 427.3 million shares worth 13.5 trillion won ($9.8 billion), with losers slightly outnumbering winners 441 to 431. Retail investors purchased 351 billion won worth of local shares, offsetting a combined 383.9 billion-won sell-off by foreigners and institutions. Overnight, Wall Street closed mixed after the Fed decided to maintain its benchmark interest rate steady at the 4.25-4.50 percent range. The Dow Jones Industrial Average went down 0.1 percent, and the S&P 500 fell 0.03 percent, while the tech-heavy Nasdaq composite went up 0.13 percent. The Fed kept its projection for two rate cuts this year but showed a more cautious mode amid persisting uncertainties stemming from US President Donald Trump's administration's tariff policies. Fed Chair Jerome Powell said uncertainties have come down after peaking in April, but tariffs are expected to heighten inflationary pressure and weigh on the US economy. Investors' eyes were also on the escalating military conflict between Israel and Iran, with the Trump administration yet to decide whether to join Israel's attack on Tehran's nuclear facilities. The KOSPI began lower due to such global uncertainties but turned higher as retail investors moved to buy shares in IT, defense and other sectors that have recently gained traction. Naver, the operator of the country's biggest search engine, jumped 3.49 percent to 252,000 won, continuing its upward momentum created by Seoul's massive investment plan in artificial intelligence and global investment bank JP Morgan's favorable outlook on the company's future performance. Kakao, the operator of the country's dominant mobile messenger, jumped 9.42 percent to 60,400 won, and Samsung SDS, a cloud provider, climbed 4.53 percent to 168,400 won, also on AI expectations. Defense shares also rose big on the back of escalating tensions in the Middle East. Industry leader Hanwha Aerospace gained 0.76 percent to 934,000 won, Poongsan shot up 17.02 percent to 126,500 won, Hyundai Rotem soared 7.89 percent to 212,000 won, and LIG Nex1 advanced 5.33 percent to 593,000 won. On the other hand, market heavyweight Samsung Electronics shed 1 percent to 59,200 won, and its chipmaking rival SK hynix lost 0.2 percent to 246,000 won. Major shipbuilder Hanwha Ocean lost 3.46 percent to 89,200 won, and game maker Krafton slid 5.75 percent to 360,500 won. Automakers were mixed, with Hyundai Motor up 0.49 percent to 207,000 won and its sister Kia down 0.71 percent to 98,200 won. The local currency was quoted at 1,380.2 won against the greenback at 3:30 p.m., sharply down 10.8 won from the previous session. (Yonhap)
Korea Herald
16 hours ago
- Korea Herald
Daewoo E&C chair meets with Mozambican leader amid LNG push
South Korean builder Daewoo Engineering & Construction said Thursday that Chair Jung Won-ju met with Mozambican President Daniel Chapo to discuss cooperation on a liquefied natural gas plant project and potential opportunities in emerging sectors. According to the company, during Jung's four-day visit to Mozambique from Monday to Thursday, his meeting at the presidential palace included a request for continued cooperation on Daewoo's ongoing LNG plant project, as well as interest and support for a new LNG project bid currently in progress. Drawing on the company's expertise built since entering the continent in 1977, Jung emphasized that Daewoo E&C has executed around 280 projects in Africa, totaling $32 billion in value. 'Building on that experience, we aim to help Mozambique emerge as a global exporter of natural gas and achieve rapid economic growth,' Jung said. In response, President Chapo pledged active support for the company's future involvement. 'I hope Daewoo will also leverage its development expertise in new city and tourism infrastructure projects beyond the LNG sector,' he said. Mozambique plays a crucial role in Daewoo E&C's LNG development strategy. It is home to one of Africa's largest natural gas reserves, estimated to supply global demand for roughly 16 years. On Monday, the company signed a memorandum of understanding with Empresa Nacional de Hidrocarbonetos, the state-run energy firm, to collaborate on gas-related development projects.
