South Korean Auto Stocks Extend Rally as U.S. Makes Tariff Cut Official

By Kwanwoo Jun

Shares of South Korean carmakers and auto-component suppliers jumped on Thursday, extending a relief rally after the U.S. Federal Register published a notice formalizing a tariff cut to 15% from 25% on Korean vehicles and parts.

Carmaker Hyundai Motor's stock closed 6.4% higher in Seoul trading, notching a three-session winning streak. Its auto-component manufacturing affiliate, Hyundai Mobis, climbed 8.8%, also rising for a third straight session. HL Mando, another car-part maker, finished 3.6% higher, gaining for a second consecutive day.

By comparison, the Kospi ended 0.2% lower.

Auto stocks began rising on Tuesday after U.S. Commerce Secretary Howard Lutnick, in a post on X, confirmed tariff reductions on Korean vehicles, retroactive to Nov. 1. The Federal Register followed up by publishing a notice on Thursday to make the tariff cut official, helping stretch the rally. The notice also confirmed lower U.S. tariffs on other South Korean goods, including lumber and aircraft.

"It is fortunate that tariff reductions on automobiles and parts--our largest export items to the U.S.--have been confirmed, eliminating uncertainty for export companies and providing some breathing room," South Korea's Industry Minister Kim Jung-kwan said in a statement.

The U.S. accounts for roughly one-third of South Korea's total car exports, according to data from his ministry.

Negotiators from both countries agreed on new terms of a trade deal in late October. Under the agreement, Seoul will invest $350 billion in the U.S., including $200 billion in cash installments, capped at $20 billion a year to minimize financial-market risks. In return, Washington will reduce tariffs on most Korean goods, including vehicles, to 15% from 25%.

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(END) Dow Jones Newswires

12-04-25 0223ET