South Korean shares end flat on hopes of US tariff hit to be less severe than expected

SEOUL, Feb 10 (Reuters) - Round-up of South Korean financial markets:

South Korean shares recovered most of their early losses to end almost flat on Monday, buoyed by expectations that the impact of U.S. tariffs on domestic firms might not be as severe as previously feared.

The benchmark KOSPI .KS11 closed down 0.68 points, or 0.03%, at 2,521.24, after falling as much as 0.9% earlier.

U.S. President Donald Trump on Sunday said he would introduce new 25% tariffs on all steel and aluminum imports, on top of existing metals duties, in another major escalation of his trade policy overhaul.

Trump is also expected to provide later this week more details of his reciprocal tariff plan unveiled last Friday.

Steelmaker POSCO Holdings 005490.KS ended down 0.84%, while peer Hyundai Steel 004020.KS dropped 2.03%, after falling as much as 4.8% and 3.2%, respectively.

South Korea's acting President Choi Sang-mok discussed responses to proposed tariffs on steel and aluminum, and the country's industry ministry held an emergency meeting with steel companies.

"Other than the steel sector, and the auto sector, the market was overall in relief, as reciprocal tariffs are a softer measure than universal tariffs and unlikely to directly affect domestic companies," said Huh Jae-hwan, an analyst at Eugene Investment Securities.

Hyundai Motor 005380.KS shed 0.55% and sister automaker Kia Corp 000270.KS lost 1.97%, but chipmaker Samsung Electronics 005930.KS jumped 3.54%, while battery maker LG Energy Solution 373220.KS climbed 3.13%.

Of the total 943 traded issues, 415 shares advanced, while 458 declined.

Foreigners were net sellers of shares worth 167.4 billion won ($115.35 million).

The won was quoted at 1,451.2 per dollar on the onshore settlement platform KRW=KFTC, up 0.19%.

The most liquid three-year Korean treasury bond yield KR3YT=RR rose by 1.2 basis points to 2.643%, while the benchmark 10-year yield KR10YT=RR rose by 1.7 bps to 2.833%.

($1 = 1,451.2000 won)