Seoul shares close lower on US tariff uncertainties
An electronic board showing the Korea Composite Stock Price Index at a dealing room of the Hana Bank headquarters in Seoul on Wednesday. (Yonhap)
South Korean stocks closed lower Wednesday as investors offloaded semiconductor shares amid concerns that the incoming US administration may scrap subsidies for chipmakers. The local currency rose against the US dollar.
The benchmark Korea Composite Stock Price Index shed 17.3 points, or 0.69 percent, to close at 2,503.06.
Trade volume was moderate at 406.3 million shares worth 8.4 trillion won (US$6 billion), with losers outnumbering winners 516 to 372.
Major tech shares lost ground after a senior official from the incoming Donald Trump administration stated in a social media post that it is "highly inappropriate" for the incumbent government to expedite efforts to distribute subsidies to chipmakers ahead of the transition.
"Due to the customs-related issues sparked by Trump, carmakers and chipmakers traded bearish on Wall Street, weighing down the market. But such issues were already reflected in the market to some extent," said Han Ji-young, a researcher at Kiwoom Securities Co.
Foreigners sold a net 368.4 billion won, while institutions bought a net 292 billion won. Individuals offloaded a net 28 billion won.
Top tech giant Samsung Electronics plunged 3.43 percent to 56,300 won, and No. 2 chipmaker SK hynix lost 4.97 percent to 168,300 won.
Carmakers closed bearish as well, with Hyundai Motors falling 1.12 percent to 221,000 won, and its sister company Kia losing 3.08 percent to 94,300 won. Auto parts maker Hyundai Mobis decreased 1.2 percent to 246,000 won.
Leading oil refiner SK Innovation decreased 2.86 percent to 115,500 won, and S-Oil also slipped 2.86 percent to 115,500 won.
Online search engine giant Naver added 3.78 percent to 203,000 won, and Kakao gained 3.65 percent to 38,350 won.
The local currency was trading at 1,397 won against the greenback at 3:30 p.m., up 1.2 won from the previous session. (Yonhap)
