South Korean shares gained for a third consecutive day on Tuesday as investor concerns around a trade package with the US were lessened following bilateral talks last week. In addition, gains made by automotive and biotechnology stocks boosted the overall markets.

The Korea Composite Stock Price Index or Kospi rose by 16.56 points, or 0.7%, to close at 2,565.42. The Kosdaq increased by 7.05 points, or 0.98%, to close at 726.46.

In economic news, the International Monetary Fund (IMF) cut its outlook for South Korea's per capita gross domestic product, now projecting it will hit $34,642 in 2025, reverting to 2022 levels, and delaying the $40,000 milestone by two years to 2029.

The revision reflects the Korean won's nearly 9% decline against the greenback since October 2024, weighing heavily on dollar-denominated GDP.

The IMF also slashed South Korea's 2025 growth forecast to 1%, down from 2% in January. Although the country is still expected to stay ahead of Japan in per capita GDP through 2030, Taiwan is now forecast to surpass South Korea by 2026.

In corporate news, LS Marine Solution (KOSDAQ:060370) secured a contract with state-owned Taiwan Power Company to install submarine cables for the latter's offshore wind power generation phase 2 project.

The contract is valued at 22.7 billion won and is valid until May 19, 2026, LS Marine Solution said in a Monday regulatory filing with the Korea Exchange.

Shares of LS Marine Solution rose nearly 3% at market close on Tuesday.