The Minute to Read (Weekdays) series provides a quick overview of significant events in Korea everyday, conveniently condensed into a one-minute read. Here’s a recap of what happened yesterday: Apr. 13.
Samsung finds relief as U.S. temporarily exempts phones from tariffs
The U.S. Trump administration has temporarily exempted smartphones, computers, and key tech components from steep new 125% reciprocal tariffs on Chinese imports, easing fears of surging tech prices and alleviating pressure on companies like South Korea’s Samsung Electronics, LG, and other tech giants, including Apple and TSMC. However, uncertainty remains as the tariff relief may be short-lived, with other trade measures potentially on the horizon. While this move provides temporary relief, companies remain cautious, continuing to navigate the unpredictable nature of global trade policies.
S. Korea’s stock market resilient amid U.S. tariff uncertainty
South Korea’s stock market showed resilience amid global volatility triggered by the U.S. tariff announcement. From April 3 to 11, the KOSDAQ index rose by 1.57%, benefiting from undervalued stocks, while the KOSPI index declined by 2.92%. The recovery of the KOSDAQ was driven by large-cap pharmaceutical and biotech stocks, and the shipbuilding sector provided additional support. Despite ongoing uncertainty from U.S. tariff policies, the chronic undervaluation of South Korea’s stock market, along with strong sector performance, has helped cushion the impact.
S. Korean firms navigate uncertainty over U.S. trade policies
South Korean companies are scrambling to adjust to U.S. President Trump’s sudden 90-day suspension of reciprocal tariffs, announced on April 10. The move has thrown trade strategies into disarray, especially for automakers and tech firms like LG Electronics and Samsung, who had prepared for new tariffs. Hyundai, in particular, has faced turmoil over fluctuating tariffs on vehicles, while smaller exporters struggle with uncertainty. Companies are using the temporary freeze as a chance for negotiations, but growing concerns persist about the unpredictable trade landscape and potential gaps in diplomacy due to South Korea’s upcoming election.
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