South Korean Shares Extend Gains

The KOSPI rose more than 3% on Wednesday, extending gains from the previous session as improving prospects of a resolution to the Middle East conflict lifted sentiment. President Donald Trump reiterated that his administration is in talks with Iran, despite Tehran denying that negotiations are underway. Hopes of a potential ceasefire pushed oil prices lower, offering relief to investors, as elevated energy costs have heightened inflation risks in South Korea due to its reliance on imports. Among stocks, SK Hynix jumped over 5% after reports it is considering a US listing this year to keep pace with surging AI-driven memory demand. Its peer Samsung Electronics also gained more than 3%. Other heavyweights advanced, including Hyundai Motor (+3.1%), LG Energy Solution (+1.5%), Hanwha Aerospace (+2.3%), and Doosan Enerbility (+2.7%). On the economic front, South Korea’s composite consumer confidence index eased to 107.0 in March from 112.1 in February.

The benchmark KOSPI rose 2.74% to close at 5,554 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 (2.15%), SK hynix (6.22%), Hyundai Motor (1.86%), LG Energy Solution (9.76%), SK Square (7.00%), and Hanwha Aerospace (4.46%) 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%).