South Korean Shares Rise on Easing Middle East Tensions

The benchmark KOSPI rose more than 1% to around 5,500 on Tuesday, partially reversing losses in the previous session as easing concerns over Middle East tensions lifted global risk appetite. Oil prices retreated after US President Donald Trump delayed planned strikes on Iranian energy infrastructure, raising hopes for de-escalation and prompting investors to unwind defensive positions built on expectations of a prolonged conflict and sustained energy shock. Lower crude prices offered relief to Korea’s inflation outlook and cost pressures, supporting a broad-based recovery in equities. Additional momentum came from a positive Wall Street lead, with Samsung Electronics (1.3%), SK hynix (3.3%), Hyundai Motor (1.6%), LG Energy Solution (5.8%), SK Square (4.1%), and Hanwha Aerospace (1.7%) posting gains. The Korean won also briefly rebounded from a 17-year low, helping stabilize foreign investor sentiment, though it continues to face pressure from recent volatility.

The benchmark KOSPI fell 6.49% to close at 5,406 on Monday, tracking a sharp regional selloff amid escalating tensions in the Middle East. The US issued a 48-hour ultimatum threatening to strike Iran’s energy infrastructure if the Strait of Hormuz is not fully reopened, while Iran warned it could shut the vital oil route and target regional facilities, raising fears of a severe supply disruption and keeping crude prices elevated. The developments weighed heavily on Korean equities given the country’s reliance on energy imports, with higher oil prices expected to fuel inflation and squeeze corporate margins. The Korean won also slid past the 1,500 per dollar level to its softest in over a decade, signaling sustained foreign outflows and tighter financial conditions. Losses were broad-based across large caps, including Samsung Electronics (-6.42%), SK hynix (-7.75%), Hyundai Motor (-6.00%), LG Energy Solution (-5.06%), SK Square (-8.55%), and HD Hyundai Heavy Industries (-9.66%).

The benchmark KOSPI rose 0.31% to close at 5,781 on Friday, edging up from the previous session as easing concerns over the Middle East conflict lifted risk sentiment. The move followed signals from the US and Israel indicating restraint in further attacks on Iranian energy infrastructure, helping oil prices pull back after surging above $119 per barrel at the height of the escalation. The retreat in energy prices eased immediate inflation concerns and stabilized global markets, allowing a recovery in regional equities. The Korean won also strengthened, reducing pressure on foreign flows and providing additional support to stocks. Large-cap performance was mixed, with declines in Samsung Electronics and SK hynix limiting broader gains, while LG Energy Solution (0.94%), Samsung Biologics (1.01%), and Doosan Enerbility (2.92%) rose. Still, the Middle East conflict remains a key risk, with elevated oil prices and lingering supply concerns likely to keep volatility high in the near term.