Seoul: South Korean stocks traded sharply higher late Tuesday morning despite U.S. President Donald Trump's announcement of increased tariffs on Korean imports, including automobiles. The benchmark Korea Composite Stock Price Index (KOSPI) rose 67.56 points, or 1.36 percent, to 5,017.15 as of 11:20 a.m., after initially opening lower.

According to Yonhap News Agency, President Trump declared via social media that he would raise "reciprocal" tariffs and auto tariffs on South Korea from 15 percent to 25 percent. He argued that the South Korean legislature has yet to complete the domestic process required to implement a bilateral trade deal. Despite the political uncertainty, investors seemed unfazed, viewing the tariff issue as a short-term concern rather than something that would provoke a lasting market correction.

Technological stocks were at the forefront of the market's ascent. Samsung Electronics, the largest company by market capitalization, saw its shares increase by 1.64 percent. SK hynix also experienced significant advances, with its shares rising by 4.48 percent. In the automotive sector, Hyundai Motor's shares remained unchanged, whereas Kia's shares decreased by 1.42 percent. HD Hyundai Heavy Industries experienced a loss, with shares falling 3.31 percent.

Telecommunications companies, particularly SK Telecom, performed well. SK Telecom's shares shot up by 11.97 percent, driven by positive earnings forecasts for 2026 from brokerage houses. Other telecommunications rivals, such as KT and LG Uplus, also experienced gains, with shares increasing by 3.03 percent and 7.83 percent, respectively.

Insurance stocks were among the beneficiaries, with Samsung Life Insurance's shares rising by 2.41 percent. The local currency was quoted at 1,448.8 won against the U.S. dollar, marking a decline of 8.2 won from the previous session's close.