US-Korea Trade Deal Sparks Won Surge, Hyundai & Kia Stock Rally
US-Korea Trade Deal Triggers Currency Surge and Hyundai, Kia Stock Rally
October 29, 2025, saw a dramatic breakthrough in trade negotiations between South Korea and the United States, sending immediate ripples through the domestic financial markets and the automotive industry. The Presidential Office announced that an agreement had been reached on specific details regarding investment in the U.S. Notably, the deal includes large-scale financial investments and cooperation in the shipbuilding industry, setting the stage for an even stronger economic partnership between the two nations. News of the agreement triggered a sharp drop in the won/dollar exchange rate, and Hyundai and Kia stocks surged in after-hours trading on the NEXTRADE exchange, reflecting a positive market response. The outcome of this agreement is expected to have a positive impact on the entire South Korean economy and contribute to strengthening the competitiveness of the automotive industry in particular.
Kim Yong-beom, Chief of Staff for Policy at the Presidential Office, provided details on the results of the US-Korea trade negotiations. He stated, "The financial investment in the U.S. totals $350 billion, consisting of $200 billion in cash investment and $150 billion in shipbuilding cooperation." He also added that the upper limit for U.S. investment has been set at $20 billion per year. This investment agreement is expected to help secure new growth engines through the expansion of domestic capital investment abroad and to strengthen competitiveness through technological cooperation in the shipbuilding sector. The government plans to support domestic companies in becoming more active in overseas markets based on this agreement. In particular, it will focus on strengthening the economic cooperation between the two countries through the expansion of investment in the U.S. and on increasing the growth potential of the South Korean economy.
Furthermore, the Presidential Office announced that the tariff on South Korean automobile products exported to the US will be reduced to 15% as a result of this agreement. This is expected to greatly contribute to enhancing price competitiveness in the U.S. market, finally resolving a long-standing issue for the domestic automotive industry: tariff barriers. "Tariffs on automobiles and auto parts will also be reduced to 15%," emphasized Kim Yong-beom, highlighting the positive impact of this tariff reduction on the domestic automotive industry. This tariff reduction is expected to greatly enhance the export competitiveness of domestic automakers, including Hyundai and Kia. It is also expected to positively impact performance through increased market share in the U.S. The government plans to actively support the expansion of exports in the automotive industry based on the results of this agreement and to strengthen the related industrial ecosystem.
As news of the US-Korea trade deal spread, Hyundai and Kia stocks surged in after-hours trading on the NEXTRADE exchange. Hyundai closed at 285,500 won on the after-hours market, up 13.97% from the previous day's closing price on the Korea Exchange. This is interpreted as a reflection of the anticipation for the effects of the tariff reduction, as well as positive expectations for the expansion of investment in the U.S. Kia also closed the after-hours market at 125,500 won, up 10.48% from the previous day's closing price on the Korea Exchange, demonstrating strong investor interest. This stock rally is expected to improve investment sentiment in the domestic automotive industry and increase the growth potential of related companies. It is also expected to create a positive atmosphere throughout the stock market and raise investor expectations.
Lee Jae-myung, President of South Korea, assessed that this US-Korea trade deal is "an important step for the mutually beneficial development of both economies," and stated, "We will continue to build an even stronger economic partnership through continuous cooperation." U.S. President Donald Trump also welcomed the agreement, stating, "I expect economic cooperation between the United States and South Korea to be further strengthened." The two leaders pledged to expand cooperation in various fields based on the results of this agreement and to work together to contribute to the stability and growth of the global economy. In particular, they plan to strengthen cooperation in various fields such as energy, technology, and infrastructure, and to focus on discovering new growth engines. The government plans to support domestic companies in becoming more active in overseas markets based on the results of this agreement and to further solidify the economic partnership between the two countries.
