South Korean Shares Plunge Near 3-Week Low

The benchmark KOSPI fell more than 6% to around 5,440 on Wednesday, sliding to its lowest level in nearly three weeks, as worsening tensions in the Middle East pushed oil prices higher and fueled global risk aversion. Oil prices jumped after Iran disrupted shipping in the Strait of Hormuz, with Brent settling above $81 per barrel and WTI near $75, raising concerns over higher import costs and inflation in energy-dependent South Korea. Overnight declines on Wall Street added to the negative momentum. Losses were concentrated in large-cap exporters, including Samsung Electronics (-5.1%), SK hynix (-3.9%), Hyundai Motor (-7.2%), Kia Corp (-8.1%), LG Energy Solution (-5.0%), and SK Square (-7.6%). The won also depreciated further, amplifying foreign outflows and adding to imported inflation pressures, after overseas investors had already posted record net equity sales in February.

The benchmark KOSPI fell 7.24% to close at 5,792 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 (-9.88%) and SK hynix (-11.50%) plunged alongside Hyundai Motor (-11.72%), Kia Corp (-11.29%), LG Energy Solution (-7.96%), and SK Square (-9.92%). The won also weakened, compounding equity pressure as foreign investors trimmed positions. In contrast, defense-related stocks such as Hanwha Aerospace (+19.83%) and Korea Aerospace Industries (+3.19%) advanced on expectations of stronger military demand.

The benchmark KOSPI fell 1% to close at 6,244 on Friday, retreating from historic highs as investors moved to secure gains after a sharp rally. The pullback came a day after the index surged more than 3% to finish above the 6,300 mark for the first time. Index heavyweights trended lower, with notable declines from Samsung Electronics (-2.06%), SK Hynix (-4%), Hyundai Motor (-1.64%), Kia Corp (-2.67%), and SK Square (-5.30%). External sentiment was also weak, with US markets offering little support after Nvidia Corp. sank 5.5% despite solid earnings. On the upside, Lee Jae Myung reaffirmed his commitment to strengthening the capital market and boosting valuations. Following the index’s milestone move past 6,000, he stated that reforms are designed to eliminate the long-standing “Korea discount” and drive a structural market re-rating. Markets will be closed on Monday for a public holiday, with trading set to resume on Tuesday.