Seoul stocks opened lower Tuesday after US President Donald Trump unexpectedly announced that Washington will raise tariffs on South Korean automobile and other products to 25 percent from 15 percent.
The Korea Composite Stock Price Index fell 41.39 points, or 0.84 percent, to 4,908.20 in the first 15 minutes of trading.
In a social media post, Trump said the United States will raise tariffs on automobiles, lumber and pharmaceutical goods, as well as "all other" reciprocal tariffs, condemning the South Korean parliament's lack of effort to approve what he calls a "Historic Trade Agreement."
Trump was apparently referring to a bill that the ruling Democratic Party submitted to the parliament in November to implement the bilateral trade and investment deal, which has yet to be passed.
Last year, the two countries agreed on a trade deal under which South Korea would invest $350 billion in the US in return for a cut in tariff rates.
Top tech giant Samsung Electronics moved down 1.45 percent, and No. 2 chipmaker SK hynix remained unchanged.
Leading carmaker Hyundai Motor fell 3.55 percent, and its sister Kia lost 4.9 percent. Hanwha Aerospace shed 1.58 percent.
Pharmaceutical companies opened weak as well, with Samsung Biologics falling 0.5 percent and Celltrion moving down 2.79 percent.
Utility service providers opened higher, with KEPCO rising 2.48 percent and Korea Gas increasing 0.5 percent.
The local currency was trading at 1,449.4 won per US dollar at 9:15 a.m., down 8.8 won from the previous session. (Yonhap)
