US-South Korea Trade Talks Nearing Breakthrough? South Korean Stocks Hit Record High, Hyundai Motor Surges Nearly 9%

On Thursday morning, fueled by optimism over a potential breakthrough in US-South Korea trade talks, South Korean stocks hit another record high.  

 

The Korea Composite Stock Price Index (KOSPI) saw expanding gains after the opening, with a rise exceeding 2% to 3,732.20 points as of this report, setting a new historical peak. Year-to-date, the index has surged 55%.

KOSPI Index Performance Year-to-Date  

 

On Thursday morning, over 600 stocks on the South Korean market rose, with foreign inflows exceeding $180 million.  

 

South Korean automakers and tech companies led the rally, driven by growing optimism about a US-South Korea trade agreement. Recently, both South Korean officials and the US Treasury Secretary signaled positive developments, suggesting a breakthrough in negotiations could come within days.

US-South Korea Trade Talks Nearing Breakthrough  

The South Korean President’s Chief Policy Advisor stated on Thursday that he is “optimistic” about negotiations for a trade deal with the US. South Korea’s Finance Minister, Trade Minister, and other senior officials are preparing to travel to Washington for further talks.

 

US Treasury Secretary Bessent also noted on Wednesday that the two countries are close to finalizing a trade agreement, expected to be announced within the next 10 days.  

 

Previously, South Korea reached a preliminary agreement with the Trump administration in late July to reduce US import tariffs from 25% to 15%, in exchange for South Korea investing $350 billion in US strategic industries.  

 

However, negotiations stalled over investment details, delaying the US tariff reduction commitment, which had weighed on South Korean stocks.  

 

Given South Korea’s auto industry heavily relies on US exports, automakers saw the sharpest gains on Thursday amid optimism in trade talks. Hyundai Motor’s stock surged nearly 9% in early trading, and Kia rose over 7%, both hitting one-year highs.  

 

Other tech firms, including Samsung Electronics, SK Hynix, and LG Energy Solution, also saw steady gains.  

 

Among them, Samsung Electronics rose over 2% in early trading, hitting a record high. On Tuesday, Samsung’s preliminary earnings reported Q3 operating profit of 12.1 trillion KRW ($8.5 billion), far exceeding analyst expectations of 9.7 trillion KRW, driven by AI-fueled memory chip demand, marking a three-year high.