South Korean stocks closed nearly 1% higher on Monday, driven by semiconductor and battery gains as US tariff concerns eased.

The Korea Composite Stock Price Index, or Kospi, rose 23.17 points, or 0.95%, to close at 2,455.89. The Kosdaq also increased by 13.39 points, or 1.92%, to 708.98.

Investors continued to weigh cautiously the escalating trade tensions between the US and China, with the most recent move being China halting exports of rare earth minerals and magnets to the US following the Trump administration's imposition of high tariffs of up to 145% on Chinese imports.

In addition, the US also emphasized "no exception" for Chinese electronic products when it came to tariffs, which may hit semiconductors and the electronics supply chain sometime soon.

In economic news, South Korea's exports jumped 13.7% to $18.58 billion in the first 10 days of April from a year earlier, data from the Korea Customs Service indicated Friday.

The increase in outbound shipments was due to more working days of 8.5 during the period as compared to 7.5 a year ago.

Imports rose 6.5% to $19.68 billion, leading to a $1.09 million trade deficit.

In corporate news, automaker Kia (KRX:000270) and Swiss cleantech company Bcomp entered a partnership to integrate ampliTex, a bio-based composite made from flax fibers, into the rear seat shell and front seat structures of its Concept EV2.

The move follows earlier collaborations on the Concept EV3 and EV4.

Shares of Kia rose more than 1% at market close on Monday.