📈 July 8, 2025 (Tue) – “Tariff Relief, FX Stability, and Samsung’s Shock Earnings”

South Korea’s markets surged on hopes of delayed U.S. tariffs and a stronger won, though Samsung’s earnings miss created mixed sentiment in tech.

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📊 Market Summary

• KOSPI: 3,115.75 (+1.83%)
• KOSDAQ: 784.28 (+0.75%)
• KRW/USD: ₩1,367.60 (−0.68%)

The KOSPI rallied nearly 2% as large-cap exporters rebounded, and the Korean won appreciated against the U.S. dollar amid easing geopolitical tensions.

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📰 Key News & Themes

1. 🇺🇸 Trump hints at possible tariff delay

• President Trump softened his stance on August 1 tariffs, stating they are “not 100% confirmed,” easing global trade fears.
• This led to gains across Asian markets, with South Korea responding positively to reduced external risks.
  (The Guardian)

2. 💰 KRW appreciates as dollar rally slows

• The U.S. dollar’s surge lost steam, and the Korean won strengthened sharply.
• Korea’s foreign exchange authorities were seen actively stabilizing the market.

3. 📉 Samsung Electronics posts earnings shock

• Samsung’s Q2 operating profit fell 56% YoY to ₩4.6 trillion, missing estimates due to chip export restrictions and supply chain issues.
• The stock fell, and concerns about the broader semiconductor sector mounted.
  (Business Insider)

4. 🏦 Bank of Korea expected to hold rates in July

• A Reuters poll showed most analysts expect the BOK to keep its benchmark rate at 2.50%, citing household debt concerns.
  (Reuters)

5. 🔄 South Korea, Japan in final push for tariff exemptions

• South Korea is negotiating with the U.S. to be excluded from upcoming tariffs.
• Japan is similarly engaged in diplomatic efforts to mitigate trade impact.

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🔮 Upcoming Events & Watchlist

DateEventMarket Focus

July 9	U.S. tariff grace period ends	Final decision could shift KRW, exporters
July 10	Bank of Korea policy meeting	Rate decision and debt concerns in focus
July 11	Samsung earnings call	Guidance on chip strategy & global demand
Mid-July	U.S. AI chip export restrictions update	Impact on Korea’s chip exports
Ongoing	Global digital/trade pacts	Structural changes to Korea’s export markets

 

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💡 Summary & Investment Strategy

📊 Overview

• Positives: Delayed tariff fears, KRW strength, interest rate pause expectations
• Risks: Samsung's earnings shock, prolonged chip regulations

📌 Strategy Highlights

1. Favor export-driven sectors
   • Automobiles, shipbuilding, chemicals benefit from FX trends and trade optimism
2. Selective tech exposure
   • Accumulate Samsung and chip-related names on pullbacks, watch HBM competitiveness and regulatory risk
3. Position for rate pause
   • Financials and real estate may benefit from stable monetary policy
4. Hedge FX risks
   • Use currency options or hedging tools ahead of July 9
5. Remain agile around events
   • Actively adjust positions around tariff talks, BOK meeting, and earnings season

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📝 Final Thoughts

July 8 reflected a mix of relief and concern: global trade tensions eased, FX markets stabilized, but Samsung’s earnings surprise injected fresh uncertainty.
With multiple events on the horizon, including tariffs, policy moves, and earnings season, investors should adopt an event-driven strategy while preparing for selective sector rotation.
We hope your portfolios stay resilient and adaptive throughout this dynamic summer. Good luck and stay strategic! 🙌