📢 April 3, 2025: South Korea's Economy & Stock Market Overview 📉🇰🇷

Hello, investors!

On Thursday, April 3, the South Korean stock market declined due to the U.S. announcement of reciprocal tariffs and domestic political instability. Let’s go over the key index movements and market-driving events.

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📉 Korean Stock Market Closing Summary

📊 Key Index Movements

• KOSPI: 2,486.70 (-0.76%)
• KOSDAQ: 683.49 (-0.20%)
• KRW/USD Exchange Rate: 1,462.30 (+4.63 KRW)

 

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📌 Market Highlights

✅ The U.S. announced a 25% reciprocal tariff on South Korean products.
✅ Foreign investors engaged in large-scale net selling.
✅ Individual and institutional investors provided some support, reducing losses.
✅ Political instability in South Korea weakened investor sentiment.

 

The KOSPI initially plunged 2.73% to 2,437.43 following the U.S. tariff announcement but recovered slightly due to individual and institutional buying, closing at 2,486.70. The KOSDAQ also declined slightly, ending at 683.49. Meanwhile, the KRW/USD exchange rate rose by 4.63 KRW to 1,462.30, reflecting a depreciation of the Korean won.

 

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📰 Major Economic News & Issues

1️⃣ U.S. Announces 25% Tariff on South Korean Products
U.S. President Donald Trump announced a 25% reciprocal tariff on major trading partners, including South Korea. This decision is expected to have a significant impact on South Korea’s economy, especially on export-oriented industries.

 

2️⃣ Large-Scale Foreign Investor Selloff

Foreign investors led the market decline, selling 1.3752 trillion KRW worth of KOSPI stocks. Meanwhile, individual and institutional investors net bought 795.3 billion KRW and 460.8 billion KRW, respectively, helping to limit the losses.

3️⃣ Sector Performance

📉 Semiconductor Sector: Samsung Electronics (-2.04%), SK Hynix (-1.67%)
📉 Automotive Sector: Hyundai Motor (-1.27%), Kia (-1.41%)
📈 Biopharmaceutical Sector: Samsung Biologics (+6%), Celltrion (+2.24%)

 

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🔮 Upcoming Events & Market Outlook

📌 April 4: U.S. Employment Data Release
📌 April 5: China’s Caixin Services PMI Release
📌 April 8: South Korea’s Trade Balance Report

The market is expected to react to global economic indicators and domestic and international political developments.

 

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🏆 Conclusion & Investment Strategy

📢 The South Korean stock market declined due to the U.S. tariff announcement and domestic political instability.
📢 Foreign investors’ large-scale net selling drove the decline, though individual and institutional buying helped recover some losses.
📢 While semiconductor and automotive stocks weakened, the biopharmaceutical sector showed strength.

✅ Analyze the impact of U.S. tariffs on South Korean exporters.
✅ Monitor changes in investor sentiment due to domestic political issues.
✅ Prepare for market volatility ahead of key global economic data releases.

That concludes our April 3, 2025 market analysis. We hope this helps your investment decisions—wishing you a successful trading day! 🚀📈