South Korean stocks closed higher Wednesday as technology and shipbuilding shares gained amid reactions to US President Donald Trump's tariff plan. The index rebounded from early losses to end with modest gains. Foreigners and institutions bought 96.84 billion won and 51.88 billion won, while retail investors sold 197.32 billion won.
The Korea Composite Stock Price Index, or Kospi, was up by 9.34 points, or 0.4%, to close at 2,548.39. The Kosdaq decreased by 4.41 points, or 0.6%, to end at 745.18.
In economic news, South Korea will invest 260 billion won this year to advance shipbuilding technologies and boost global competitiveness, according to the Ministry of Trade, Industry and Energy.
The budget, up 40% from last year -- will allocate 170 billion won for environment-friendly vessels, 70 billion won for digital shipbuilding, and 20 billion won for autonomous ships -- bringing the total to 260 billion won.
The focus includes developing clean-energy-powered ships and environment-friendly equipment such as wind power auxiliary devices.
In corporate news, metal manufacturer Poongsan (KRX:103140) signed a large-diameter ammunition supply contract with Hanwha Aerospace (KRX:012450) earlier this week.
Under the 358.5 billion won deal, Poongsan will supply the large-diameter ammunition to Hanwha Aerospace within South Korea.
Shares of Poongsan rose nearly 2% at market close on Wednesday while those of Hanwha Aerospace increased over 4%.
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