South Korean shares steady as chipmakers gains counter steelmakers losses

Published 02/06/2025, 09:42
© Reuters.

Investing.com -- South Korean shares saw little change on Monday, with the rise in chipmakers balancing out the losses experienced by steelmakers. This comes as investors’ attention is drawn towards the country’s sudden presidential election set to take place the following day.

The KOSPI, South Korea’s benchmark index, closed almost flat on the day despite chip manufacturers Samsung Electronics (KS:005930) and SK Hynix rising by 1.1% and 1.5% respectively. This followed data that revealed a significant leap in semiconductor exports in May, due to a strong demand for advanced memory chips.

In contrast, South Korea’s overall exports experienced a dip in May, marking the first decrease in four months. This was primarily due to a reduction in shipments to the United States and China, triggered by the global trade conflict initiated by U.S. President Donald Trump’s comprehensive tariffs.

Steel production companies also felt the impact of these tariffs, with POSCO (NYSE:PKX) Holdings and Hyundai Steel (KS:004020) seeing their shares drop by 2.40% and 2.66% respectively. This followed Trump’s decision to double tariffs on steel and aluminium imports to 50%.

Meanwhile, South Koreans are preparing to participate in a sudden election on Tuesday. They will be voting for a new president to replace Yoon Suk Yeol, who was removed from office in April. His short-lived attempt to impose martial law had caused considerable unrest throughout the country.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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