Corporate Logo(source: hyundai.com)
Despite the conclusion of tariff negotiations between South Korea and the United States, shares of Hyundai Motor (005380) and Kia (000270) declined on July 31, as investors expressed disappointment over the final tariff rate on automobiles. While the South Korean government had pushed for a 12.5% tariff, the United States held firm on a 15% rate.
As of 10:22 a.m., Hyundai Motor was trading at 216,000 won, down 7,000 won or 3.14%, on the Korea Exchange. Kia fell 4.71% to 105,200 won, continuing its downward trend.
Market participants appeared disheartened by the auto tariff being set at 15% instead of the 12.5% requested by Korea. Under the agreement, the reciprocal tariff the U.S. had planned to impose starting August 1 was lowered from 25% to 15%, with the same 15% rate applied to automobiles.
Kim Yong-beom, Chief Presidential Secretary for Policy, stated during a briefing at the presidential office in Yongsan, Seoul, “We made every effort until the final stage to secure a 12.5% tariff on automobiles, but the United States insisted on a flat 15% rate. Maintaining our position risked undermining the entire agreement framework, so we had no choice but to accept.”
*[KOSPI] Hyundai Motor Company(005380) is a leading domestic automobile manufacturer with a lineup of Genesis, Kona, and Palisade, etc. The market capitalization is 45.66 trillion won (as of July 30, 2025, closing price).
*[KOSPI] Kia(000270) is a leading domestic automobile manufacturer, with a diverse lineup including Morning, Stinger, K9, Sorento, and EV9, and is expanding its Purpose-Based Mobility(PBV) and service businesses aiming to provide sustainable mobility solutions. The market capitalization is 43.903 trillion won (as of July 30, 2025, closing price)
Corporate Logo(source: hyundai.com)
Despite the conclusion of tariff negotiations between South Korea and the United States, shares of Hyundai Motor (005380) and Kia (000270) declined on July 31, as investors expressed disappointment over the final tariff rate on automobiles. While the South Korean government had pushed for a 12.5% tariff, the United States held firm on a 15% rate.
As of 10:22 a.m., Hyundai Motor was trading at 216,000 won, down 7,000 won or 3.14%, on the Korea Exchange. Kia fell 4.71% to 105,200 won, continuing its downward trend.
Market participants appeared disheartened by the auto tariff being set at 15% instead of the 12.5% requested by Korea. Under the agreement, the reciprocal tariff the U.S. had planned to impose starting August 1 was lowered from 25% to 15%, with the same 15% rate applied to automobiles.
Kim Yong-beom, Chief Presidential Secretary for Policy, stated during a briefing at the presidential office in Yongsan, Seoul, “We made every effort until the final stage to secure a 12.5% tariff on automobiles, but the United States insisted on a flat 15% rate. Maintaining our position risked undermining the entire agreement framework, so we had no choice but to accept.”
*[KOSPI] Hyundai Motor Company(005380) is a leading domestic automobile manufacturer with a lineup of Genesis, Kona, and Palisade, etc. The market capitalization is 45.66 trillion won (as of July 30, 2025, closing price).
*[KOSPI] Kia(000270) is a leading domestic automobile manufacturer, with a diverse lineup including Morning, Stinger, K9, Sorento, and EV9, and is expanding its Purpose-Based Mobility(PBV) and service businesses aiming to provide sustainable mobility solutions. The market capitalization is 43.903 trillion won (as of July 30, 2025, closing price)