South Korean auto, shipbuilding shares climb after trade deal finalized
South Korean auto and shipbuilding stocks rose on Thursday after Seoul and Washington finalized the trade deal announced in July.
Hanwha Ocean rose as much as 14.9%, while Samsung Heavy Industries gained 8.33% at its peak. Defense products manufacturer Firstec It also rose to 9.7%.
Automakers Hyundai and Kia gained around 12% and 9%, respectively.
The deal, detailed following a meeting between President Lee Jae Myung and US President Donald Trump, includes reducing US tariffs on South Korean goods in exchange for a promise of $350 billion in investment from Seoul; It’s a move that could reshape trade and defense ties between the two allies.
Under the new terms, US customs duties on South Korean exports will drop to 15% from the previously applied “tariff letter” rate of 25%. 350 billion dollar investment promise from South Korea reportedly contains $200 billion $150 billion was allocated to direct investment and shipbuilding cooperation.
Kim Yong-beom, South Korea’s chief policy adviser, said the $200 billion investment would be capped at $20 billion a year. reported as if saying.
Trump also said this in a Truth Social post He said that South Korea has approved the construction of nuclear submarines at the “Philadelphia Shipyards”. This will be Seoul’s first nuclear submarine.
Made by South Korean shipbuilder Hanwha $5 billion investment in Philly Shipyards As part of Seoul’s commitment to invest $150 billion in August.
“As President Trump and Chairman Lee make shipbuilding a central plank in the US-Korea alliance, Hanwha stands ready to support with our advanced shipbuilding scale,” Hanwha Chief Strategy Officer Alex Wong said in a statement. he said.
South Korea’s Yonhap He also stated that an information note covering both trade and security components of the agreement between Seoul and Washington will be published in the coming days.
