The impact of the universal and reciprocal tariff enforcement by the Donald Trump administration has led to a drop of more than 131 trillion won in the market capitalization of domestic stock markets within one day.
According to the Korea Exchange on the 7th, the market capitalization of the KOSPI market is 1,907.592 trillion won as of the closing price on that day. It decreased by 112.305 trillion won in one day, falling below the 2,000 trillion won mark for the first time since Jan. 3. The market capitalization of the KOSDAQ also decreased by 18.454 trillion won.
With President Trump expressing the intent to impose universal and reciprocal tariffs, major countries, including China, have stated their intentions to implement retaliatory tariffs, raising concerns about an economic recession. Contrary to market expectations, Jerome Powell, Chair of the Federal Reserve, also noted that he will take a wait-and-see approach. This led to a "panic sell."
As large-cap stocks also struggled, the market capitalization of major corporate groups plummeted. Samsung Group saw its market capitalization fall below the 500 trillion won mark as Samsung Electronics' stock price dropped back to 53,200 won. SK Group's market capitalization was also broken at 200 trillion won in just one day. The stock price of SK hynix fell to 160,000 won for the first time since last November.
Moreover, when looking at the decline in market capitalization by large corporate groups, the drop rates were ▲ LG Group 4.56% ▲ Hyundai Motor Group 5.63% ▲ Hanwha Group 6.88% ▲ HD Hyundai Group 7.94% ▲ POSCO Group (POSCO Holdings) 6.74% ▲ Kakao Group 4.41% ▲ Celltrion Group 5.11% ▲ NAVER Group 3.03%.