Top South Korean official expresses optimism about US tariff talks, fuelling stock rally

Group 1 - South Korea's chief presidential policy adviser expressed optimism about finalizing a trade deal with the U.S., indicating progress in negotiations that have positively impacted the stock market, particularly in the auto sector [1][2] - South Korean officials, including Finance Minister Koo Yun-cheol, noted "huge progress" in negotiations, with Foreign Minister Cho Hyun highlighting "positive signals" towards reaching a deal [2] - U.S. Treasury Secretary Scott Bessent stated that the countries are close to finalizing a trade deal, with an announcement expected within the next 10 days, coinciding with U.S. President Trump's upcoming visit to South Korea [3] Group 2 - Concerns in Seoul regarding foreign exchange implications and the structure of a $350 billion investment package from a preliminary deal have led to requests for safeguards, such as a currency swap line, to mitigate potential currency market impacts [4] - The KOSPI stock index rose 2.5% to a record high, with Hyundai Motor shares increasing by 8.3% and Kia by 7.2%, driven by expectations of reduced auto tariffs from 25% to 15% as promised in the July deal [5] - South Korea's top national security adviser indicated that there has been no progress in discussions with the U.S. Treasury regarding a currency swap, despite local media reports suggesting various tools for currency safeguards are being considered [6] Group 3 - An economist from Citi reported that the likelihood of a partial compromise has increased, contingent on three conditions: expedited timing for a deal, maintaining the $350 billion figure, and implementing safeguards to address currency risks rather than an unlimited central bank dollar swap line [7]