Name: South Korean auto stocks jump after U.S. trade pact announcement
Uploaded: 2025-10-30T00:41:58.345Z
Duration: 2 min 59 s
Description: South Korean auto and shipbuilding shares rally following a landmark trade agreement with the U.S., boosted by market optimism and Trump’s comments at the APEC Summit.

South Korean auto and shipbuilding shares rally following a landmark trade agreement with the U.S., boosted by market optimism and Trump’s comments at the APEC Summit.

Gyeongju-si

South Korean auto stocks experienced a notable rise after news of a trade agreement between South Korea and the United States. The agreement includes a reduction in auto tariffs to 15 percent, aligning them with Japanese levels, which contributed to the strong performance of the auto sector in South Korean markets. 

Additionally, shipbuilding stocks, particularly Hanwha Ocean, also surged following a statement from U.S. President Donald Trump that South Korea has been approved to build a nuclear-powered submarine at a U.S. shipyard recently acquired by Hanwha Ocean. The full details of the trade deal are expected to be released soon, pending ratification by South Korea's National Assembly.

South Korean auto stocks jump after U.S. trade pact announcement

So, what the South Korean market wanted was a deal getting done with the United States and a deal that could be structured in a way that doesn't really bring a lot of shock to the South Korean system and affects reserves. And I think the market seems to think that we are getting that, at least when it comes to the South Korean government side. Not a lot of details coming from the U.S. side, though, but we are getting that kind of positive reaction in markets at this point in time. And we already saw that in the ETFs and sectors like autos really flying high. In fact, that is the top-performing sector this morning because of this agreement between the U.S. and South Korea that brings down auto tariffs down to 15 percent to match that of Japanese side. And this is another sector that is quite interesting, and that is shipbuilding. This is really in line with the manufacturing boom in the United States that the Trump administration really wants to drive. And in fact, when he was speaking at the APEC CEO Summit, he highlighted the shipbuilding prowess that South Korea has. And then I do want to zoom in on one particular stock there that is surging by more than 10 percent right now. Let's zoom in on Hanwha Ocean. This is a very interesting company. By the way, this is a company that actually has been slapped with sanctions by the Chinese side just a few days ago, so interesting sort of juxtaposition between the U.S. and China over this one particular company. The reason why this stock is seeing this particular standout upside compared to some of its peers is this one truth social post coming from U.S. President Donald Trump just overnight, saying that South Korea now has the approval to build a nuclear-powered submarine out of the Philadelphia shipyard, which, by the way, Hanwha Ocean has acquired just a few months ago. And when it comes to nuclear-powered submarines, I mean, we're talking about a very small group of countries possessing such vessels, and Hanwha Ocean gets to do that, although not from South Korea's side, but from the U.S. shipyard. I think this is one interesting element that shows this alliance that U.S. wants to keep with South Korea. In fact, President Trump is speaking at the CEO Summit, saying that South Korea and the U.S. are, quote, wedded, so really highlighting the serious partnership in all this. And of course, when it comes to this trade deal, we are going to get the full details in the coming days. It still needs to be approved, ratified by the National Assembly in South Korea, but definitely a bit of a party mode in South Korean stock markets this morning.

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