South Korean Stocks Slip on Diplomatic Uncertainty

The benchmark KOSPI fell 1.62% to around 5,551 on Thursday, pulling back gains from the previous sessions, as investors adopted a cautious stance amid mixed geopolitical signals. Although optimism briefly emerged after signals from the White House that talks with Tehran are progressing, uncertainty remains elevated. Conflicting statements from Iran, including its foreign minister’s dismissal of formal negotiations, have dampened risk appetite, leaving investors weighing prospects for de-escalation. The conflict, which began on 28 February 2026, has now been underway for about four weeks. Local equities showed broad-based weakness, particularly among heavyweight technology names. Samsung Electronics (-2.83%) and SK hynix (-3.82%) dragged on the index, while SK Square (-5.21%), Hyundai Motor (-1.40%), and LG Energy Solution (-1.40%) also posted notable losses.

The benchmark KOSPI rose 1.59% to close at 5,642 on Wednesday, extending gains from the previous session as improving prospects for 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 gained 1.12% after reports it is considering a US listing this year to keep pace with surging AI-driven memory demand. Its peer Samsung Electronics also edged up 0.11%, along with other heavyweights, including Hyundai Motor (1.63%), SK Square (2.18%), Hanwha Aerospace (4.34%), and Doosan Enerbility (2.50%). 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.