Seoul Shares Dip Amid Growing Concerns Over US Protectionism Policies

Seoul, January 22 (IANS) – South Korean shares fell on Tuesday following an order from US President Donald Trump directing his administration to address unfair trade practices globally. The benchmark Korea Composite Stock Price Index (KOSPI) dropped by 9.26 points, or about 1 percent, and stood at 2,510.79, down 0.37 percent as of 11:20 AM, according to Yonhap News Agency.

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Seoul Shares Dip Amid Growing Concerns Over US Protectionism Policies Seoul Shares Dip Amid Growing Concerns Over US Protectionism Policies

After the inauguration ceremony, Trump announced plans to impose tariffs of up to 25 percent on Mexico and Canada starting in early February. He also vowed to revise policies on electric vehicles in his inaugural speech.

Later, Trump signed executive orders to review free trade agreements, which may include the Korea-US Free Trade Agreement (KORUS FTA).

In Seoul, shares in battery and chemical companies traded in the negative zone. Leading battery manufacturer LG Energy Solution fell by 5.4 percent, while POSCO Future M saw a 10.33 percent decline.

Top oil refiner SK Innovation saw a 4.4 percent drop, and LG Chem fell by 5.35 percent.

However, semiconductor stocks showed strength, with chip giant SK Hynix gaining 1.42 percent and chip equipment maker Hanmi Semiconductor rising 2.22 percent.

At 11:20 AM, the local currency traded at 1,439.35 won against the greenback, an increase of 11.25 won from the previous session.

Meanwhile, South Korea’s trade minister, Chung In-kyo, will consult closely with his counterparts on how to respond to trade policies under the second Trump administration during the World Economic Forum in Davos, Switzerland.

According to the Ministry of Trade, Industry, and Energy, Chung will attend the annual meeting of government and business leaders under the theme “Cooperation for the Smart Age” from Wednesday to Friday (local time) to discuss pending global issues.

The ministry stated in a press release that more than 350 government and business leaders are expected to attend the five-day event, which began on Monday.

With President Trump assuming office, the trade minister will meet with his counterparts from countries sharing similar concerns about their trade relations with the United States.