South Korean Auto Shares Rise After U.S. Confirms Lower Tariffs

By Kwanwoo Jun

South Korean auto shares rose Tuesday after the U.S. Commerce Department confirmed that tariffs on Korean vehicles would be cut to 15% from 25%, retrospective to early November.

Carmaker KG Mobility's stock was recently up 13% in Seoul after surging as much as 21%, leading gains among South Korean auto makers. Shares in Hyundai Motor and sibling automaker Kia were last up 4.9% and 4.0%, respectively, outperforming the benchmark Kospi's gain of less than 2%.

The rally in auto stocks came hours after Commerce Secretary Howard Lutnick posted a statement on X, describing South Korea's recent strategic-investment legislation for the U.S. as the key step toward ensuring the benefit of a trade deal between Seoul and Washington.

"In response, the U.S. will lower certain tariffs under the deal--including auto tariffs to 15%, effective November 1," Lutnick said in the X post.

In late October, U.S. and South Korean negotiators wrapped up months of intense talks and agreed on the terms of the deal.

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%.

Trade data from Seoul on Monday showed South Korean car exports rose 14% in November from a year earlier, a strong rebound from an 11% drop in October.

South Korea's overall shipments to the U.S. edged down 0.2% in November, following a 16% plunge in October, signaling the start of a recovery phase after months of declines.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

December 02, 2025 00:25 ET (05:25 GMT)