South Korean Shares Fall on Geopolitical Shock, Oil Surge

The benchmark KOSPI fell 0.86% to close at 5,809 on Monday, reversing from the previous session, as rising geopolitical tensions and higher oil prices weighed on sentiment. Markets retreated after US–Iran talks collapsed without an agreement. Washington then moved to impose a naval blockade on Iranian ports, raising fears of prolonged conflict and disruptions to global energy supply. Crude prices climbed above $100 per barrel, intensifying concerns over inflation and slower global growth, with South Korea particularly exposed due to its heavy reliance on energy imports. Foreign investors led the selling, dragging down large-cap stocks and reinforcing the index’s decline. Investors reduced exposure to export-oriented and cyclical sectors amid heightened uncertainty. Losses were seen across major stocks, including Samsung Electronics (-2.55%), Hyundai Motor (-2.40%), LG Energy Solution (-3.03%), Kia Corporation (-1.41%), and KB Financial Group (-1.33%).

The benchmark KOSPI rose 1.40% to close at 5,859 on Friday, rebounding from the previous session and heading for its strongest weekly gain in over 17 years, amid a global tech rally and US–Iran ceasefire hopes. CoreWeave struck a $21 billion deal with Meta Platforms, reinforcing AI infrastructure demand and boosting South Korean equities as an AI bellwether. Wall Street’s tech-led gains supported chipmakers, with Samsung Electronics (0.98%) and SK hynix (2.91%) among the top gainers, alongside Hanwha Aerospace (3.51%) and KB Financial Group (2.46%). At the same time, sentiment improved on the ceasefire over upcoming US-Iran negotiations, though risks persisted as restricted traffic through the Strait of Hormuz kept oil near $100 per barrel, sustaining inflation concerns. Meanwhile, foreign outflows capped gains, after investors recorded a third straight month of net selling in March, marking a record high and underscoring caution toward Korean assets amid geopolitical uncertainty.

The benchmark KOSPI fell 1.61% to close at 5,778 on Thursday, snapping a four-day rally as investors turned cautious amid a fragile US–Iran ceasefire. Geopolitical tensions remained elevated after both sides disputed the terms of the agreement, raising concerns that the Strait of Hormuz could face renewed disruptions. The uncertainty drove oil prices higher again, reinforcing risk-off sentiment and pressuring energy-import-dependent markets like South Korea. Technology stocks led the decline, with major chipmakers such as Samsung Electronics (-3.33%) and SK hynix (-3.48%) moving lower, weighing heavily on the index. Cyclical sectors also retreated, with construction shares pulling back after the previous session’s sharp rally, reflecting fading optimism following the initial ceasefire announcement. Losses were recorded in Hyundai Motor (-4.04%), Hanwha Aerospace (-2.63%), SK Square (-3.29%), Kia Corporation (-5.62%), and Hyundai Engineering & Construction (-4.35%).