Latest news with #iMSecurities
Bloomberg
26-05-2025
- Business
- Bloomberg
Won May Extend Rally on Easing Political Risks, Trade Deal Bets
The South Korean won is attracting a growing number of bullish calls from analysts, who expect the country's trade negotiations with the US and easing political uncertainties to extend a recent rally. The currency may strengthen to as high as 1,320 per dollar by the end of the year, according to BofA Securities. That suggests the potential for over 3% advance following last week's 2.6% rally, which was the best in Asia. iM Securities Co. in Seoul forecasts a move toward 1,350.
Korea Herald
09-04-2025
- Business
- Korea Herald
Kospi slips below 2,300 as US tariffs take toll
Korean won slides past 1,480 won to weakest point since 2009 The South Korean benchmark Kospi sank below the 2,300 threshold for the first time in 17 months, taking a blow from the angst surrounding the US "reciprocal tariffs." Coupled with the stock market's slump, the value of the Korean won per dollar further weakened past 1,480 won. As the US government's 25 percent reciprocal tariffs on Korean goods took effect Wednesday as previously scheduled, the Kospi stood at 2290.69 as of 2:30 p.m., down 44.52 points or 1.91 percent from the previous session. It was the first time the Kospi had dropped below the 2,300 mark since hitting 2,288.64 on Nov. 1, 2023. The index kicked off trading at the opening bell at 2,329.99, but losses deepened through the session, and it dipped to as low as 2,289.07. The plunge comes two days after a sidecar — a five-minute halt on program trading — was activated on Kospi 200 futures on Monday, as the benchmark fell below 2,400. With the bearish market, market bellwethers Samsung Electronics traded at 53,300 won, down 0.37 percent, while SK hynix stood at 163,300 won, down 3.66 percent as of 2:30 p.m. Foreign investors dumped roughly 845 billion won on the Kospi as of 2:30 p.m. Institutional investors deepened the market's loss by net selling 108 billion won. Retail investors were the sole buyers, racking in 850 billion won. The secondary bourse Kosdaq stood at 639.25 as of 2:30 p.m., down 19.2 points or 2.92 percent from the previous session. It was the first time for the Kosdaq to drop below the 650 threshold during intraday trading since December. Other stock markets in Asia were also deep in the red. Japan's benchmark Nikkei tumbled 4.4 percent, while the Taiwanese Taiex fell by 5.8 percent and Hong Kong's Hang Seng fell by 1.6 percent. Only China's Shanghai Composite Stock Market Index marked a slight gain of 0.2 percent as of press time. Foreign investors' selling spree on the stock market also pulled down the local won's value per dollar. The Korean won's value per dollar reached 1,487.3 won during daytime trading Wednesday, weakening to its worst since hitting 1,492 won on March 16, 2009. The won's value per dollar stood at 1,484.53 as of 2:30 p.m. The won's depreciation also results from the devaluation of the Chinese yuan as the local currency is treated as the yuan's proxy. The offshore yuan fell to its weakest level on record after China eased its tight grip on the currency in an attempt to offset the blow to exports amid the intensified trade war. 'If the US-China currency war intensifies and the Chinese yuan further weakens, the won-per-dollar rate is more likely to surpass the 1,500 won threshold,' iM Securities analyst Park Sang-hyun said.
Korea Herald
03-04-2025
- Automotive
- Korea Herald
Analysts sound alarm on Trump's 'worst-case' tariff move
Korean analysts are raising alarms over US President Donald Trump's sweeping new tariff plan, calling it a 'worst-case scenario' that threatens to disrupt Korea's financial markets and economic stability. The Trump administration on Thursday unveiled its plan to impose a 10 percent universal tariff on all imports to the US, alongside steep "reciprocal" tariffs on about 60 countries with trade surpluses — including a 25 percent levy on South Korean goods. "Reciprocal tariffs have materialized as the worst-case scenario," said Park Sang-hyun, an analyst at iM Securities, warning that they could deliver a major shock to financial markets while also slowing the US economy and increasing inflationary pressures. He predicted a substantial and unavoidable blow to Korea's economy. 'From the second quarter onward, slowing exports to the US and ASEAN countries could further drag down domestic growth, making it increasingly likely that economic growth could fall below 1 percent this year,' he said. Even before the tariff announcement, global investment banks had lowered their forecasts for Korea's economic growth in the first quarter. Nomura slashed its estimate to 0.1 percent from 0.6 percent, while BNP Paribas projected growth of just 0.2 to 0.3 percent. Jung Yeo-kyung, an analyst at NH Investment & Securities, expects Korea's export recovery to slow further in the second quarter, citing ongoing uncertainties surrounding Trump's tariffs and retaliatory measures from affected countries. 'At this stage, companies are unable to execute investment plans with stability. We expect stable new orders to emerge only after reciprocal tariff negotiations conclude in the second quarter,' she said. Korea's automobile industry is bracing for a loss of competitiveness, with nation-specific US tariffs raising costs and pressuring exports. Hyundai Motor and its smaller affiliate Kia, which have manufacturing plants in Vietnam, India and Indonesia, will face even higher reciprocal tariff rates than Korea itself. Meanwhile, the European Union, Brazil, Turkey and Singapore lack production lines for key US-bound sport utility vehicles and Genesis models, limiting their ability to offset supply chain disruptions. 'Unless reciprocal and import tariffs on automobiles are adjusted through country-specific negotiations, increasing US-based production will be inevitable. However, as more production shifts to the US to avoid tariffs, exports from Korean plants to the US will inevitably decline — further weakening Korea's already slipping position in global auto manufacturing, which has fallen from fifth to seventh place,' said Moon Yong-kwon, an analyst at Shinyoung Securities. Separately, the 25 percent tariff on automobiles announced by Trump on March 26 officially took effect Thursday. With automobiles ranking as Korea's top export to the US, the impact is expected to be severe. Last year, Korea exported $34.7 billion worth of automobiles to the US, accounting for 49.1 percent of Korea's total global auto exports.
Reuters
28-03-2025
- Business
- Reuters
South Korea exports to rise for second month on chip boost; tariff risks loom
SEOUL, March 28 (Reuters) - South Korea's exports likely rose in March for a second straight month on a growth in chip sales, a Reuters poll found on Friday, but economists warned of weakening momentum due to U.S. tariffs. Outbound shipments from Asia's fourth-largest economy are projected to have risen 3.5% in March from a year earlier, after a revised 0.7% rise in February, according to a median forecast of nine economists. Last month, exports barely rose despite favourable calendar effects, as demand in key markets, such as China, the biggest trading partner for South Korea, was hurt amid a global trade war triggered by U.S. President Donald Trump's tariffs. Since taking office in January, Trump has introduced tariffs on inbound shipments from China as well as imports of steel and aluminium. New tariffs on automobiles will kick in from next week, while Trump has also threatened to impose duties on chip imports and prepare reciprocal tariffs against major trading partners. "With reciprocal tariffs due to be implemented from April, it is difficult to expect a rebound in exports," said Park Sang-hyun, an economist at iM Securities. Hana Securities' economist Chun Kyu-yeon said: "Downward pressure will be inevitable for the time being as there is a high possibility of South Korea being included in the 'Dirty 15' due to persistent trade imbalances." In the first 20 days of this month, exports rose 4.5%, led by an 11.6% jump in semiconductors. By destination, shipments to the United States and the European Union rose, but those to China fell. SK Hynix ( opens new tab, the world's second-largest memory chipmaker after Samsung Electronics ( opens new tab, said on Thursday some customers had brought forward orders in preparation for new tariffs on semiconductors. Meanwhile, imports likely rose 2.3% in March, the survey also found, faster than a 0.2% increase in February. The median estimate for the country's trade balance stood at a surplus of $6.06 billion, wider than $4.15 billion in the previous month. South Korea, the first major exporting economy to report trade figures each month, is scheduled to release data for March on April 1 at 9 a.m. local time (0000 GMT).
Korea Herald
04-03-2025
- Business
- Korea Herald
Bitcoin tumbles as Trump tariff tensions escalate
Trump's remarks continue to rattle volatile crypto market The recent crypto rally fueled by the US strategic stockpile plan was short-lived, with bitcoin tumbling nearly 10 percent as global markets reeled from uncertainty over proposed US tariffs. As of 2:30 p.m. Tuesday, bitcoin was trading at around $84,000 globally, according to data tracker CoinMarketCap, down nearly 10 percent from the previous day, erasing $1.65 trillion in market value. In South Korea, it was trading at approximately 127 million won ($87,000), carrying a near 3 percent premium over global prices. The pullback wiped out nearly all of bitcoin's gains from the day before, which had been sparked by US President Donald Trump's social media post reaffirming his push for a strategic crypto reserve. "A US Crypto Reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration," Trump wrote, adding, "We are making America great again." The post marked his first public comment on the crypto reserve since issuing a January executive order on digital assets, which directed the President's Working Group on Financial Markets to explore the creation of a national digital asset stockpile. In the same post, Trump named the five cryptocurrencies expected to be included in the reserve: bitcoin, ethereum, XRP, solana and cardano. His remarks ignited a sharp rally, sending bitcoin to an intraday high of $95,000, up 11 percent. Ethereum, the world's second-largest cryptocurrency, gained 13 percent, while XRP and solana surged 34 percent and 24 percent, respectively. The comparatively lesser-known cardano saw a massive 70 percent jump. However, market skepticism quickly set in. As Trump confirmed that a 25 percent tariff on Canada and Mexico, as well as an additional 10 percent tariff on China, would take effect as scheduled on Tuesday, market uncertainty intensified, quickly reversing the crypto prices and erasing recent gains. Altcoins were hit even harder, with ethereum dropping 15 percent and solana losing 20 percent. In total, the global crypto market lost around $330 billion in value in just one day. The global trade crisis is expected to escalate as the US prepares to expand its tariffs. Trump also warned of mutual tariffs on countries imposing tariffs on US products, set to begin in April. Market watchers predict that high volatility will continue in the crypto market. "The recent remarks were significant because Trump expressed his determination to create a 'reserve,' not just stockpile digital assets," said Park Sang-hyun, an analyst at iM Securities. "However, the rally couldn't overcome the tariff risks. For now, the cryptocurrency market, including bitcoin, is expected to experience increased volatility depending on the direction of tariff policies."
