Stock Market's KOSPI Index Potential to Strive for 3,200 Mark Again
South Korea's Stock Market Shows Resilience Amid Global Trade Uncertainties
South Korea's stock market continued its positive trajectory in 2025, with the KOSPI index surging over 28-30% in the first half of the year, making it one of the best-performing Asian markets globally. However, recent trading shows some volatility with minor declines and sectoral mixed performances.
On Thursday, the KOSPI finished slightly higher, with a rise of 6.68 points or 0.21 percent. Notable gains included KB Financial, which strengthened 1.65 percent, and LG Chem, which surged 4.68 percent. On the other hand, Lotte Chemical improved 1.49 percent, but Shinhan Financial dropped 1.76 percent.
The positive performance has been driven by significant inflows of global investment, nearly $3 billion in May and June, reflecting investor confidence despite geopolitical risks and trade tensions such as Trump's tariffs on exports. The market strength indicates an ongoing transformation in South Korea's business environment, boosting investor sentiment.
However, the technology and industrial sectors have shown mixed results. While Samsung Electronics and SK Hynix had marginal gains, others like Samsung SDI and LG Electronics fell. Shares like LG Chem, Lotte Chemical, SK Innovation, and Hyundai Mobis also declined, indicating that trade deal concerns or global market conditions may be dampening these sectors more than technology overall.
Meanwhile, the U.S. could sign up more deals with its remaining trading partners before President Donald Trump's Aug. 1 deadline. The global markets forecast for Asian markets is cautiously optimistic due to the improving outlook for trade deals.
In other news, crude oil rose on Thursday, with West Texas Intermediate crude for September up $0.87 or 1.33 percent to $66.12 per barrel. The U.S. Energy Information Administration reported that crude stockpiles declined more than expected last week.
In the U.S., U.S. initial jobless claims unexpectedly fell last week, as reported by the Labor Department. U.S. Secretary of the Treasury Scott Bessent stated that the talks are "going better than they had been" and that progress is being made.
Thursday's trading saw 707 decliners and 192 gainers, with a total volume of 422.4 million shares worth 12.9 trillion won. The South Korea stock market has risen in back-to-back sessions, accumulating more than 20 points or 0.6 percent.
Canada, India, South Korea, and the EU are ramping up their efforts to reach agreements with the U.S. This complex interplay points to cautious optimism for these sectors amid evolving trade dynamics.
- The ongoing transformation in South Korea's business environment, as indicated by the stock market's resilience, is attracting significant global investment, particularly in finance and industry sectors.
- The tech and industrial sectors in South Korea have shown mixed results, with some companies like LG Chem and SK Innovation experiencing growth, while others like Shinhan Financial and Samsung SDI have seen declines, potentially due to trade deal concerns or global market conditions.
