South Korean Shares Retreat from Record High

The benchmark KOSPI rose 2.7% to close at 5,377 on Friday, recouping losses from the previous session, following reports that Iran and Oman were drafting a protocol to monitor transit through the Strait of Hormuz. The news raised hopes that the key waterway could partially reopen. Meanwhile, US President Donald Trump imposed a 15% tariff on South Korean pharmaceutical products under a bilateral trade agreement. Most sectors finished in the green, led by electronic technology, which rose over 4%, with major index heavyweights climbing, including Samsung Electronics (+4.7%) and SK Hynix (+6.1%). Other notable gainers included Hyundai Motor (+1.2%), Hanwha Aerospace (+2.1%), and Doosan Enerbility (+3.2%). On the economic front, South Korea’s foreign exchange reserves fell to $423.7 billion in March from $427.6 billion in February. For the week, however, the benchmark index went down 1.1%, marking the second consecutive loss.

The benchmark KOSPI slumped 4.47% to close at 5,234 on Thursday, reversing the previous session’s gains as renewed geopolitical concerns rattled investors. Sentiment was dampened after Donald Trump signaled in a public address that the US is “nearing completion” of its military objectives in the Middle East while vowing to “finish the job” in the near term. Trump cautioned that over the next two to three weeks, the US could hit Iranian targets “extremely hard” and potentially “bring them back to the Stone Age,” threatening energy facilities if no deal is reached. Economic data added to market caution, with South Korea’s consumer prices rose 2.2% in March, above the 2% target, led by a 9.9% jump in petroleum, the sharpest since October 2022. Notable losers were Samsung Electronics (-5.91%), SK Hynix (-6.83%), Hyundai Motor (-4.61%), and Doosan Enerbility (-6.02%).

The benchmark KOSPI rose 0.92% to around 5,529 on Thursday, extending gains for a second consecutive session as easing geopolitical tensions boosted investor confidence. Optimism followed Donald Trump’s comments suggesting the monthlong Middle East conflict could be nearing an end, raising hopes of reduced global risk. Trump indicated the US could withdraw from Iran relatively soon while retaining the option for limited strikes if needed, and claimed that Iran’s leadership had requested a ceasefire, though the statement was rejected by the country’s foreign ministry. Markets remained attentive ahead of Trump’s scheduled public address. Notable gains were led by LG Energy Solution (3.07%), Hanwha Aerospace (7.50%), and KB Financial (3.30%), while technology stocks were mixed, with Samsung Electronics flat and SK Hynix edging lower (-0.67%).