South Korean Shares Slide on Middle East Escalation

2026-03-03 01:51 By Erika Ordonez 1 min. read

The benchmark KOSPI fell more than 2% to around 6,110 on Tuesday, extending losses from the previous session, as escalating tensions in the Middle East unsettled regional markets.

The decline followed coordinated US-Israeli strikes on Iranian targets and growing threats to shipping through the Strait of Hormuz, driving oil prices sharply higher and raising concerns over inflation and energy costs for import-dependent economies such as South Korea.

Losses were concentrated in large-cap exporters, with technology and autos leading the downturn.

Samsung Electronics (-2.3%) and SK hynix (-2.8%) fell alongside Hyundai Motor (-4.0%), Kia Corp (-5.7%), LG Energy Solution (-2.6%), and SK Square (-2.7%).

The won also weakened, compounding equity pressure as foreign investors trimmed positions.

In contrast, defense-related stocks such as Hanwha Aerospace (+13.1%) and Korea Aerospace Industries (+4.1%) advanced on expectations of stronger military demand.



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South Korean Shares Slide on Middle East Escalation
The benchmark KOSPI fell more than 2% to around 6,110 on Tuesday, extending losses from the previous session, as escalating tensions in the Middle East unsettled regional markets. The decline followed coordinated US-Israeli strikes on Iranian targets and growing threats to shipping through the Strait of Hormuz, driving oil prices sharply higher and raising concerns over inflation and energy costs for import-dependent economies such as South Korea. Losses were concentrated in large-cap exporters, with technology and autos leading the downturn. Samsung Electronics (-2.3%) and SK hynix (-2.8%) fell alongside Hyundai Motor (-4.0%), Kia Corp (-5.7%), LG Energy Solution (-2.6%), and SK Square (-2.7%). The won also weakened, compounding equity pressure as foreign investors trimmed positions. In contrast, defense-related stocks such as Hanwha Aerospace (+13.1%) and Korea Aerospace Industries (+4.1%) advanced on expectations of stronger military demand.
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