📉 July 11, 2025 (Fri) – “Foreign Inflows Persist, Trade Risk Remains, Earnings Season to Lead”
Despite persistent global uncertainty, foreign capital continued to flow into Korean markets. While concerns about new tariffs under the Trump administration lingered, optimism over the upcoming corporate earnings season helped keep market sentiment afloat.
📊 Market Summary
- KOSPI: 3,175.77 (−0.23%)
- KOSDAQ: 800.47 (+0.35%)
- USD/KRW: ₩1,375.10 (+0.09%)
KOSPI slightly declined due to institutional selling, while KOSDAQ rebounded with tech-led strength. The won weakened slightly against the dollar.
📰 Key News & Market Insights
1. 🌏 Foreign Inflows into Asian Equities Continue
- Asian markets—including Korea and Taiwan—saw $6.02 billion in net foreign inflows in June, led by semiconductor and tech stocks.
- However, trade policy uncertainties, particularly from the U.S., remain a key concern.
(Reuters)
2. ⚠ Importance of Predictable Trade Policy
- Goldman Sachs emphasized that predictability in trade policy is more important than tariff magnitude in ensuring market stability.
- Korea, Taiwan, and Japan are expected to have limited direct exposure to the latest tariffs.
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3. 🇰🇷 U.S. Asks Korea to Help Counter China in Shipbuilding
- The U.S. formally requested that Korea participate in curbing China’s dominance in global shipbuilding.
- Broader trade negotiations reportedly include requests for increased imports of U.S. energy and agriculture products.
(Reuters)
4. 🏦 Bank of Korea Signals Potential Rate Cut
- Four BoK board members hinted at a possible rate cut within three months, while maintaining caution due to real estate bubbles and household debt concerns.
(Reuters)
5. 📈 KOSPI Market Cap Exceeds ₩3,000 Trillion
- For the first time ever, the total market capitalization of the KOSPI exceeded ₩3,020 trillion, reflecting foreign inflows and strong earnings expectations.
(Korea.net)
6. 💬 Corporate Earnings Season Begins
- Anticipation is growing for Q2 earnings reports from both Korean and U.S. firms.
- Upcoming results from Samsung Electronics and Hyundai Motor are expected to serve as key indicators of global export strength.
🔮 Outlook & Key Dates
| July 11 | Start of earnings season in Korea & U.S. | Tech/export/financial guidance |
| Aug 1 | U.S. tariffs on copper and Brazilian goods | Trade volatility exposure |
| Mid-July | U.S. CPI release | Fed rate cut timeline |
| Ongoing | USD/KRW trend & foreign capital movement | FX hedge, portfolio adjustment |
| Ongoing | Korean policy reforms | Shift in GVC & structural policies |
✅ Investment Strategy & Insights
📌 Summary
- Foreign investors continue to support Korean stocks.
- Trade and policy risks persist, but upcoming earnings are poised to lead sentiment.
- Selective positioning around export and earnings-driven sectors remains valid.
📍 Strategy Recommendations
- Increase exposure to export-led sectors
- Focus on semiconductors, autos, and batteries benefiting from global recovery.
- Add value & dividend plays
- Financials, insurers, and utilities with policy-linked safety.
- Screen for structural reform beneficiaries
- Monitor stocks aligned with global trade and policy shifts.
- Implement earnings-driven trading
- Capture upside around key results from Samsung, Hyundai, etc.
- Hedge against possible FX risk
- Prepare for won depreciation scenarios.
📝 Final Thoughts
On July 11, Korea’s stock market reflected a mix of cautious sentiment and resilient fundamentals.
While uncertainty from U.S. tariffs and trade remains, strong capital flows and earnings expectations are offering support.
With a data-heavy week ahead, staying nimble, balanced, and event-focused will be essential.
Wishing you clarity and confidence in your investments through this pivotal earnings season. 🙌