South Korean Shares Extend Losses

The benchmark KOSPI fell 0.2% to around 5,475 on Monday, extending losses from the previous session, as rising geopolitical tensions and currency volatility weighed on investor sentiment. Escalating conflict in the Middle East continued to pressure markets, pushing Brent crude oil above $100 per barrel after US strikes on Iranian military targets near the key export hub on Kharg Island. The surge in oil prices heightened concerns about inflation and growth risks for energy-importing economies such as South Korea. The Korean currency also added to market unease after the won briefly weakened past the 1,500-per-dollar level for the first time since 2009 before trimming losses, reflecting persistent pressure from the oil shock and risk-off flows in global markets. Meanwhile, major semiconductor stocks provided some support, with Samsung Electronics (+1.4%) and SK hynix (+3.5%) advancing on continued demand for artificial intelligence-linked memory chips.

The benchmark KOSPI slipped 1.72% to close at 5,487 on Friday, extending losses for another consecutive session as investor sentiment deteriorated amid a surge in oil prices and a broader global market selloff. The decline followed a sharp drop in US equities overnight. The Dow Jones Industrial Average slid 1.56% to its lowest level this year, while the Nasdaq Composite dropped 1.78%. Equity markets faced added pressure after Mojtaba Khamenei, Iran’s newly appointed leader, pledged to keep the Strait of Hormuz closed. The heightened tensions pushed Brent crude above $100 per barrel, while West Texas Intermediate rose to about $95.73, fueling concerns over inflation and global economic growth. Tech stocks led the decline, with chipmakers Samsung Electronics (-2.18%) and SK Hynix (-2.04%) posting notable losses. Battery makers and oil refiner firms also dragged the index lower, including LG Energy Solution (-3.65%), SK Innovation (-5.34%), and S-Oil (-4.49%).

The benchmark KOSPI fell 0.48% to close at 5,583 on Thursday, trimming gains from the previous sessions as investors turned cautious amid renewed volatility in global energy markets. Overnight signals from Wall Street offered little support, with markets ending mixed as investors stayed on the sidelines despite a coordinated release of emergency oil reserves by major economies. South Korea plans to contribute 22.46 million barrels from its strategic reserves as part of the International Energy Agency’s 400 million-barrel release, a move aimed at easing global supply pressures. In currency markets, the won weakened sharply against the dollar, reflecting a broader risk-off mood. Investors gravitated toward the greenback as a safe-haven asset while monitoring the potential economic fallout from fluctuating oil prices. Notable decliners were Samsung Electronics (-0.74%), SK Hynix (-0.89%), Hyundai Motor (-1.32%), KB Financial (-1.32%), and Celltrion (-1.79%).