South Korean Shares Plunge Further

The benchmark KOSPI fell more than 2% to around 5,140 on Tuesday, sliding for a fourth straight session, amid escalating Middle East tensions. US President Donald Trump threatened to strike Iran’s oil wells and key export infrastructure if a deal is not reached soon, while ongoing disruptions to shipping through the Strait of Hormuz heightened concerns over global energy supply. Crude prices pushed past $100 per barrel, raising concerns over inflation and growth in South Korea’s energy-dependent economy. This rattled global risk appetite, triggering heavy foreign selling and sending the Korean won to a 17-year low, further pressuring local assets, and leaving the KOSPI down about 15% for the month. The downturn extended across large-cap stocks, including Samsung Electronics (-3.5%), SK hynix (-5.8%), Hyundai Motor (-3.3%), LG Energy Solution (-2.9%), SK Square (-6.4%), Hanwha Aerospace (-4.2%), and Kia Corporation (-3.6%).

The benchmark KOSPI fell 2.97% to close at 5,277 on Monday, extending losses toward its lowest level in three 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 (-2.50%), SK hynix (-5.42%), Hyundai Motor (-5.15%), SK Square (-6.07%), Doosan Enerbility (-4.38%), and HD Hyundai Heavy Industries (-3.81%).

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%).