South Korean shares flat ahead of election; chipmakers counter losses in steelmakers

SEOUL: Round-up of South Korean financial markets:

South Korean shares ended little changed on Monday, as gains in chipmakers offset losses in steelmakers, while investor focus was on the country’s snap presidential election a day later.

The benchmark KOSPI closed up 1.30 points, or 0.05%, at 2,698.97.

Chipmaker Samsung Electronics rose 1.07% and peer SK Hynix gained 1.47%, after data showed exports of semiconductors jumped in May on robust demand for advanced memory chips.

Still, South Korea’s exports fell in May for the first time in four months, as shipments to the United States and China dropped on global trade conflict triggered by U.S. President Donald Trump’s sweeping tariffs.

Steelmaker POSCO Holdings shed 2.40% and Hyundai Steel dropped 2.66%, as Trump doubled tariffs on steel and aluminium imports to 50%.

South Koreans will go to the polls in a snap election on Tuesday, voting for a president to replace Yoon Suk Yeol, who was ousted from office in April after his brief martial law attempt sent shockwaves through the country.

“There will be hopes for new policies after the election, but it is unlikely there will be huge moves without improvements in corporate earnings,” said Huh Jae-hwan, an analyst at Eugene Investment Securities.

Among other index heavyweights, battery maker LG Energy Solution slid 0.52%, while Hyundai Motor and sister automaker Kia Corp were down 0.70% and 1.12%, respectively.

Foreigners were net buyers of shares worth 123.9 billion won ($90.30 million).

The won was quoted at 1,373.1 per dollar on the onshore settlement platform, 0.73% higher than its previous close at 1,383.1.

The most liquid three-year Korean treasury bond yield fell by 1.9 basis points to 2.339%, while the benchmark 10-year yield fell by 0.1 basis point to 2.790%.