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.