South Korean Shares Plunge Near 4-Week Low

The benchmark KOSPI fell more than 4% to around 5,200 on Monday, extending losses toward its lowest level in nearly four weeks as escalating tensions in the Middle East dampened risk appetite. Investor anxiety intensified after Yemen’s Houthi forces launched missile attacks on Israel over the weekend, marking a broadening of the conflict and triggering a global risk-off move, with major US and Asian equities also declining. Rising oil prices added further pressure, with crude climbing above $100 per barrel amid fears of supply disruptions, exacerbating concerns over South Korea’s energy-dependent economy and fueling inflation and growth risks. The Korean won remained under pressure near the 1,500-per-dollar level, as continued foreign outflows amplified downside momentum. Losses were broad-based across large caps, including Samsung Electronics (-4.0%), SK hynix (-6.3%), Hyundai Motor (-5.7%), SK Square (-7.5%), and HD Hyundai Heavy Industries (-5.8%).

The benchmark KOSPI fell 0.40% to close at 5,438 on Friday, marking its third straight day of losses and sinking to its lowest level in three weeks as investor sentiment turned sharply cautious. South Korean stocks followed Wall Street’s overnight decline, where conflicting messages on Middle East diplomacy left investors unsure of the direction of talks. A brief easing of immediate risks provided limited relief, as Washington extended its pause on strikes against energy infrastructure, stabilizing oil markets slightly while overall sentiment remained cautious. The pause was extended by 10 days, now running until early April, as talks continue, though shifting statements have kept markets on edge over whether tensions will ease or escalate further. Semiconductor stocks weighed on the index, with Samsung Electronics (-4.22%) and SK Hynix (-5.47%) trading lower, while steep declines were also seen in Doosan Enerbility (-5.60%), Hanwha Ocean (-6.05%), and HD Hyundai Electric (-7.56%).

The benchmark KOSPI fell 3.22% to close at 5,460 on Thursday, pulling back gains from the previous sessions to reach a two-week low, 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.