South Korea’s KOSPI index rises 0.6% to 3,189.65 at open

South Korea’s KOSPI index rises 0.6% to 3,189.65 at open

The South Korean KOSPI (KOSPI) index opened on July 2, 2025, at 3,189.65, marking a 0.6% increase from the previous close. This uptick is notable given the ongoing geopolitical and economic uncertainties, including the impending U.S. tariffs and the ongoing trade negotiations between South Korea and the United States.

The KOSPI index, which is a benchmark for the South Korean stock market, has been influenced by strong performances from key sectors such as technology and finance. SK Hynix, a major player in the semiconductor industry, has seen significant growth, contributing to the overall index performance. SK Hynix’s stock price has risen by 54.40% this year, driven by robust demand for semiconductor products [1].

Despite the positive performance of individual stocks and the overall index, the inflow of funds into value-up ETFs has been relatively low. According to Coscom ETF CHECK, the "TRUSTION Korea Value Up Active" ETF, which has the highest return among value-up ETFs, saw a 36.62% increase this year. However, the total amount of money flowing into 12 value-up ETFs this year was only 4.875 billion won [1].

The upcoming trade talks between South Korea and the United States, scheduled for July 22, are also likely to influence market sentiment. South Korean Finance Minister Koo Yun-cheol and Trade Minister Yeo Han-koo will meet with their U.S. counterparts to discuss the looming Aug. 1 deadline for bilateral negotiations on U.S. tariff measures. The U.S. is set to impose 25% reciprocal tariffs on South Korean products, adding to the existing sectoral tariffs on auto and steel imports [2].

Investors should remain vigilant as the market continues to navigate these complex geopolitical and economic challenges. The KOSPI index’s performance will likely be influenced by the outcomes of these trade negotiations and the broader economic outlook.

References:
[1] https://www.mk.co.kr/en/stock/11374821
[2] https://news.az/news/south-korea-us-to-hold-22-trade-talks