March 6, 2021

Japan's trade restrictions force Seoul to fall

The Seoul Stock Exchange fell sharply today in a session marked by trade restrictions imposed by Japan on South Korean companies and the downward revision of prospects regarding a possible drop in rates in the US, according to local analysts.

The Kospi, the main indicator in Seoul, fell by 2.2% or 46.42 points today, to 2,064.17 whole, while the Kosdaq technology index lost 3.67% or 25.45 points, to 668.72 units .

Seoul fell to its lowest level in a month in a bad session, marked from the beginning by June US employment data published on Friday, which turned out to be better than expected, keeping the possibility of a rate cut on the part of the Fed.

In turn, the restrictions imposed by Japan in apparent response to the rulings of several South Korean courts ordering Japanese companies to pay compensation to Korean citizens who enslaved during World War II damaged the great technology.

The restrictions affect materials – such as fluorine polyimide, for example – that South Korean companies mostly import from Japan to make commodities for South Korea's exporting muscle, such as memory chips or screens.

Samsung Electronics, a leading company in Seoul and the world's largest semiconductor maker, lost 2.74% while SK Hynix, the second-largest global memory maker, lost 1.46%.

In turn, Naver, operator of the largest South Korean Internet portal, lowered its value by 2.07%.

Vehicle manufacturers also experienced a bad day, with Hyundai Motor, the sector's first company in South Korea, losing 2.12% and its subsidiary Kia Motors falling back 0.35%.

(tagsToTranslate) restrictions (t) commercial (t) Japan (t) force (t) Seoul

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