KOSPI hits record high despite U.S. tariff uncertainty… breaks above 5,900 for the first time

Korea Economic Daily

Summary

The KOSPI extended its rally, breaking above 5,900 for the first time and rising to 5,906.13.
Despite the U.S. Supreme Court’s reciprocal tariff ruling and President Trump’s announcement of a tariff hike, retail and institutional investors were net buyers while foreigners were net sellers.
Samsung Electronics and SK hynix continued their record-high rally, while the won–dollar exchange rate fell and the KOSDAQ also traded higher.

Samsung Electronics, SK hynix set new highs

Won–dollar exchange rate down in early trading by 7 won

The KOSPI extended its rally despite uncertainty over U.S. reciprocal tariffs, breaking above the 5,900 mark for the first time on an intraday basis.

As of 9:15 a.m. on the 23rd, the KOSPI was up 97.6 points (1.68%) from the previous session at 5,906.13. It briefly jumped as high as 5,931.86 in early trading.

Attention also grew over the impact on South Korea’s stock market after the U.S. Supreme Court moved to rein in the Donald Trump administration’s country-by-country reciprocal tariffs.

Earlier, on the 21st, the U.S. Supreme Court ruled that President Trump’s reciprocal tariffs under the International Emergency Economic Powers Act (IEEPA), as well as the imposition of so-called “fentanyl tariffs” on Mexico, Canada, China and others, were unlawful.

The key basis for the ruling was that the IEEPA does not specify presidential authority to impose tariffs, making the administration’s use of the law contrary to statute.

President Trump immediately announced that he had signed an executive order imposing a new 10% tariff on imports from countries around the world. The previous day, he said he would raise it again to 15%.

At this hour, in the KOSPI market, retail and institutional investors were net buyers of 414.6 billion won and 58.5 billion won, respectively. Foreign investors were net sellers of 463.0 billion won.

Despite the tariff overhang, major blue chips including Samsung Electronics (3%), SK hynix (1.79%), Hyundai Motor (3.54%), Samsung Biologics (0.75%), Kia (1.22%) and Doosan Enerbility (0.87%) were higher. Samsung Electronics and SK hynix continued their record-breaking run, climbing to as high as 197,000 won and 980,000 won intraday.

LG Energy Solution (-0.37%) and HD Hyundai Heavy Industries (-1.16%) were lower.

The KOSDAQ was also higher. At this hour, the index was up 0.52% from the previous session at 1,159.95.

The won–dollar exchange rate fell. In Seoul’s FX market, the won opened at 1,443 per dollar, down 3.6 won from the previous session, and slid to the 1,439 level in early trading.

Noh Jeong-dong, Hankyung.com reporter dong2@hankyung.com