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Seoul shares sink over 1 percent ahead of tariff deadline, Q2 earnings

Published: 22 Jul. 2025, 17:49

The closing stock prices appear on an electronic board at the Hana Bank headquarters dealing room in central Seoul on the afternoon of July 22. [NEWS1]

Seoul shares closed sharply lower on Tuesday as investors cashed in on recent gains amid uncertainties surrounding U.S. tariff policies and upcoming corporate earnings. The Korean won rose against the U.S. dollar.

The Kospi fell 40.87 points, or 1.27 percent, to close at 3,169.94.

Trade volume was moderate at 375.19 million shares worth 11.39 trillion won ($8.2 billion), with losers outnumbering winners 686 to 208.

Institutional and foreign investors sold 413.94 billion won and 160.97 billion won worth of stocks, respectively, while individuals bought a net 511.44 billion won in shares.

"Institutions and foreigners turned net sellers after buying local stocks for the past three and eight sessions, respectively, weighing on the market," said Lee Jae-won, an analyst at Shinhan Securities.

In contrast, retail investors turned net buyers after selling for the previous three sessions.

All eyes are on possible changes to U.S. tariff policies, as President Donald Trump may announce new unilateral tariffs before Aug. 1, analysts said.

Investors are also awaiting second-quarter corporate earnings, due this week, for clues about the market's direction, they added.

In Seoul, most large-cap stocks declined.

Market bellwether Samsung Electronics fell 2.65 percent to 66,000 won, and smaller chipmaking rival SK hynix declined 1.47 percent to 268,500 won.

Top carmaker Hyundai Motor dropped 1.2 percent to 206,500 won, leading shipbuilder HD Hyundai shed 0.8 percent to 136,100 won, and No. 1 steelmaker Posco Holdings lost 1.22 percent to 323,000 won.

Among gainers, leading battery maker LG Energy Solution rose 0.76 percent to 333,500 won, and LG Chem climbed 0.7 percent to 289,000 won.

Leading wireless services provider SK Telecom gained 1.07 percent to 56,500 won, and state-run utility firm Korea Electric Power Corp. was up 0.27 percent to 37,250 won.

The local currency was quoted at 1,387.80 won against the U.S. dollar at 3:30 p.m., down 0.03 percent from the previous session's 1,388.20 won.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys rose 0.7 basis point to 2.463 percent and the return on the five-year government bonds fell 0.6 basis point to 2.622 percent.

Yonhap