South Korean Markets Surge on Artificial Intelligence Demand Despite Proposed United States Tariff Increases

South Korean shares reached a three-week high on Tuesday led by a tech sector rally. This growth persists even as new trade barriers emerge from Washington.

Insights:
South Korean shares jumped significantly on Tuesday as the KOSPI Index rose 2.73 percent, marking its largest daily increase in three weeks. This surge comes amid a global boom in artificial intelligence technology, which has propelled South Korea KRKRto become the best-performing market in Asia during 2025. This resilience was on display even as United States USUSPresident Donald Trump donald trumpannounced a plan to increase tariffs on imports from South Koreato 25 percent, a significant rise from the previous level of 15 percent.
A Hyundai Motor’s all-new NEXO is on display at the 2025 Seoul Mobility Show in Goyang, South Korea, April 3, 2025. REUTERS/Kim Hong-Ji
A Hyundai Motor’s all-new NEXO is on display at the 2025 Seoul Mobility Show in Goyang, South Korea, April 3, 2025. REUTERS/Kim Hong-Ji
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