South Korea’s equity markets witnessed a steep sell-off on Tuesday as fears over escalating global trade tensions, particularly from renewed U.S. tariff rhetoric, triggered widespread investor anxiety. The KOSPI Composite Index fell sharply by 4.40%, ending the session at 2,356.97 KRW.
The damage was widespread across key indices. The KOSPI 50 Index, which tracks South Korea’s top large-cap companies, dropped 4.51% to 2,172.62 KRW, while the KOSPI 200 Index sank 4.57% to 313.66 KRW. The KOSPI LargeCap Index also slumped 4.53%, closing at 2,348.94 KRW.
This decline follows mounting concerns stemming from former U.S. President Donald Trump’s strong backing of tariffs to address what he described as “massive financial deficits” with China, the European Union, and others. Trump’s comments, backed by senior U.S. officials, have rattled global markets, with South Korea—heavily reliant on exports—being particularly vulnerable to trade disruptions.
The ongoing volatility reflects deepening fears that a prolonged trade standoff could severely impact global supply chains and corporate earnings in Asia’s major exporting economies.
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