Korea Investment & Securities advised on the 8th that if the market enters an adjustment phase due to tariff pressure from the Donald Trump administration in the United States, investors should look for buying opportunities.
President Trump sent mutual tariff letters overnight to 14 major trading countries, including Korea, Japan, and Malaysia. He stated that he would impose a tariff of 25%, the same as announced in April for Korea.
The details also included ▲exemption from tariffs when produced or assembled in the U.S. ▲additional high tariffs for indirect exports through third countries ▲reciprocal tariffs to be implemented if retaliatory tariffs are imposed ▲the possibility of bilateral negotiation adjustments.
Researcher Ki-hun Park of Korea Investment & Securities assessed that this measure by the Trump administration could cause volatility in the domestic stock market in the short term. He noted, "Despite the strong willingness of the Korean government to negotiate, being included among the countries targeted for the first letter might act as a burden on investor sentiment."
However, Researcher Park considered that the likelihood of repeating the shock experienced when mutual tariffs were first announced in April is low. This is because there has not been a case of tariff rates as high as the previously warned 'up to 70%'. Countries like Japan and Malaysia, which have seen increases in tariff rates, only experienced a rise of 1 percentage point.
Researcher Park said, "With the effective date of the tariffs postponed to Aug. 1, leaving room for negotiation, the interpretation leans toward it being a means to pressure for bilateral negotiations rather than an actual imposition of high tariffs."
He then recommended, "Rather than excessive concerns, it would be advisable to approach this as a buying opportunity during the adjustment phase," and added, "Stocks in domestic sectors such as holding companies, finance, retail, and cosmetics, which are less sensitive to trade issues and show improving recent performance, may be relatively effective."
Researcher Park continued, "Among existing leading stocks, shipbuilding and defense could be leveraged as negotiation cards by the Korean government, and considering the recent corrections in stock prices, I believe additional declines present an area where buying opportunities are possible. Conversely, traditional export stocks such as semiconductors, automobiles, and home appliances may require a more cautious approach due to ongoing tariff uncertainties."