The shock of the 'tariff war' initiated by U.S. President Donald Trump increased uncertainty in the global economy, leading to significant fluctuations in the domestic stock market on the 3rd. The KOSPI index fell by 2.5%, dropping to the 2450 level for the first time in a month, while the KOSDAQ index barely maintained the 700 level.
On this day, the KOSPI index closed at 2453.95, down 63.42 points (2.52%) from the previous transaction day. During the trading session, the KOSPI index fell to 2437.61, though the decline eased somewhat in the afternoon. This marked the first time the KOSPI index dropped to the 2450 level since the previous month on the 3rd (closing at 2441.92).
President Trump signed an executive order imposing a 25% tariff on products coming from Mexico and Canada, and a 10% tariff on products from China under the International Emergency Economic Powers Act (IEEPA). Concerns that the Trump-led tariff war could severely impact domestic corporations led to declines in major company stock prices.
On this day, foreign investors and institutions sold stocks worth 872.2 billion won and 373 billion won, respectively, in the securities market. Only individuals purchased stocks, acquiring 1.1276 trillion won worth.
In the securities market, with the exception of Samsung Biologics (1.30%) and Naver (0.23%), all of the top market capitalization stocks turned red. Kia fell by over 5%, while SK hynix and LG Energy Solution experienced declines in the 4% range. KB Financial (-3.16%), Samsung Electronics preferred (-2.79%), Samsung Electronics (-2.67%), Celltrion (-2.06%), and Hyundai Motor (-1.94%) also closed lower.
On this day, not only the domestic stock market but also Asian stock markets, including Japan, Hong Kong, and Taiwan, reflected fears of the tariff war as they all dropped by more than 2% during the trading session.
Despite the bearish stock market, energy-related stocks such as oil and gas surged. This was influenced by a report suggesting that there could be an additional 5.17 billion barrels (Bbl; 1 barrel is approximately 159L) of gas and oil buried in the Uljin basin, where the 'Daewang Whale Project' for deep-sea gas field development is underway.
As the name of the most promising structure with the largest exploration resource volume is reported to be 'Goblin shark,' Korean Oil (29.93%), Korea ANKOR Oil Field (29.83%), Hung-gu Oil (21.67%), and Korea Gas Corporation (6.29%)—so-called 'Goblin Shark theme stocks'—experienced significant gains.
The KOSDAQ index finished trading at 703.80, down 24.49 points (3.36%) from the previous transaction day. The KOSDAQ index briefly fell to 700.57 during the trading session, indicating a precarious situation, but managed to rise slightly in the afternoon to maintain the 700 level. On this day, both institutions and foreign investors sold a net of 190.9 billion won and 103 billion won, respectively, while individuals purchased a net of 294.9 billion won.
As fears resurfaced about the Trump risk and the potential repeal of the Inflation Reduction Act (IRA), shares in second battery companies plunged. ECOPRO BM fell by over 9%, and Enchem (-7.31%), Ecopro (-6.23%) also saw significant declines.
Other major stocks in the KOSDAQ, including LigaChem Biosciences (-8.14%), Sam Chun Dang Pharm (-7.17%), Alteogen (-5.11%), LEENO Industrial (-2.80%), and HUGEL (-1.26%), also performed poorly. Only Rainbow Robotics rose by 3.34%.
Lee Jae-won, a researcher at Shinhan Investment Corp., noted, 'Since there has been no immediate news about tariff imposition since President Trump took office, risky assets have rebounded. However, with the actual implementation and forecasts of retaliatory tariffs, risky assets like stocks and Bitcoin have fallen together. Concerns over semiconductor export restrictions to China also led to weaknesses in semiconductor stocks.'
Meanwhile, as of 3:30 p.m. on this day, the won-dollar exchange rate recorded 1,467.2 won, an increase of 14.5 won compared to the previous transaction day.