South Korea’s benchmark KOSPI index fell nearly 3% on the morning of Feb. 3, almost dropping below the 2,440 level as global markets reeled from U.S. President Donald Trump’s tariffs on Canada, Mexico and China.
Asian stock markets slumped after Trump unveiled executive orders placing 25% tariffs on all goods imported from Canada and Mexico and an additional 10% tariff on Chinese goods. At 10:20 a.m., the KOSPI was down 2.6%, Japan’s Nikkei slipped 2.2%, and Taiwan’s Taiex dropped 3.3%.
The Korean won declined sharply against the dollar, with the won-dollar exchange rate crossing the 1,470 won mark for the first time in 20 days.
Foreign and institutional investors net sold roughly 399.4 billion won ($272 million) and 342.6 billion won worth of KOSPI stocks, respectively, according to the Korea Exchange. Retail investors were net buyers, buying roughly 641.7 billion won worth of stocks.
The decline was broad, with stocks falling across sectors including, manufacturing, food and tobacco, textiles and medical, and electronics.
Shares of companies directly impacted by Trump’s trade policies saw some of the steepest declines. LG Electronics, which manufactures home appliances such as refrigerators in Mexico, plummeted 5.7%, falling to the lowest level since October 2022. Kia, which also operates a plant in Mexico, dropped 5.4%. POSCO FutureM, a key supplier of battery materials for electric vehicles in partnership with Canada’s General Motors, tumbled 7.9%, hitting its lowest since August 2022.
