South Korean auto shares rose sharply after the U.S. Commerce Department confirmed that Washington’s auto tariffs on South Korea were lowered to 15%, retroactive to November 1. The U.S. also plans to remove tariffs on airplane parts and align Korea’s reciprocal rate with Japan and the EU. Hyundai Motor gained 4.52%, while Kia advanced 4.19% following the announcement.
The shift in tariff policy provided a strong boost to the broader South Korean market. The Kospi closed 1.9% higher at 3,994.93, while the tech-heavy Kosdaq rose 0.65% to 928.42. Analysts said the revision supports Korean exporters at a time when global trade conditions remain uncertain.
Inflation data released the same day showed headline prices rising 2.4% year on year in November, unchanged from October and slightly above expectations. The stable reading reinforces expectations that the Bank of Korea will hold its policy rate at 2.5% after keeping it unchanged for four consecutive meetings.
