South Korean Shares Fall on US-Iran Uncertainty

2026-04-22 01:38 By Erika Ordonez 1 min. read

The benchmark KOSPI fell 0.9% to around 6,330 on Wednesday, pulling back after a record high, as stalled US-Iran peace talks and elevated oil prices weighed on sentiment.

Investor caution persisted despite Donald Trump extending the ceasefire, as Iran refused to resume negotiations, keeping geopolitical risks and energy costs elevated for South Korea’s import-dependent economy.

Domestic inflation concerns added pressure as producer prices rose 1.6% in March, the fastest pace in nearly four years, driven by a 31.9% jump in petroleum products and a 6.7% rise in chemicals.

At the same time, earnings pressure weighed, with Hyundai Motor and Kia Corporation expected to post over 20% declines in operating profit as US tariffs and higher FX-linked warranty costs offset solid sales.

Losses were led by Samsung Electronics (-0.9%), SK Hynix (-1.5%), Hyundai Motor (-2.0%), and KB Financial Group (-2.1%), with the decline also reflecting profit-taking after a recent chip-led rally.



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South Korean Shares Fall on US-Iran Uncertainty
The benchmark KOSPI fell 0.9% to around 6,330 on Wednesday, pulling back after a record high, as stalled US-Iran peace talks and elevated oil prices weighed on sentiment. Investor caution persisted despite Donald Trump extending the ceasefire, as Iran refused to resume negotiations, keeping geopolitical risks and energy costs elevated for South Korea’s import-dependent economy. Domestic inflation concerns added pressure as producer prices rose 1.6% in March, the fastest pace in nearly four years, driven by a 31.9% jump in petroleum products and a 6.7% rise in chemicals. At the same time, earnings pressure weighed, with Hyundai Motor and Kia Corporation expected to post over 20% declines in operating profit as US tariffs and higher FX-linked warranty costs offset solid sales. Losses were led by Samsung Electronics (-0.9%), SK Hynix (-1.5%), Hyundai Motor (-2.0%), and KB Financial Group (-2.1%), with the decline also reflecting profit-taking after a recent chip-led rally.
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South Korean Shares Hit Record High
The benchmark KOSPI jumped 2.72% to close at 6,388 on Tuesday, hitting a fresh record high as risk appetite improved on hopes for easing Middle East tensions and continued momentum in chipmakers. Investors remained focused on the approaching US-Iran ceasefire deadline, amid expectations for further talks, largely brushing off threats of renewed military action if negotiations fail. Further supporting the rally, South Korea’s exports surged 49.4% year-on-year in the first 20 days of April, driven by a sharp rebound in semiconductor shipments, which jumped over 180%, reinforcing optimism over the earnings outlook for the country’s key tech sector. Samsung Electronics (2.10%) and SK hynix (5.19%) led the advance, while LG Energy Solution (11.31%), Hyundai Motor (3.61%), SK Square (2.43%), Doosan Enerbility (4.05%), and HD Hyundai Heavy Industries (10.11%) also posted notable gains. Foreign investors returned as net buyers, helping lift the index past its previous highs.
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South Korean Shares Rise Near Record Highs
The benchmark KOSPI rose 0.44% to close at 6,219 on Monday, extending gains toward record highs, as technology stocks led the advance despite persistent geopolitical uncertainties. Semiconductor shares underpinned the index, with SK hynix (3.37%) climbing on optimism over its next-generation AI memory and record earnings prospects. LG Energy Solution (2.75%), SK Square (2.79%), Doosan Enerbility (2.40%), and HD Hyundai Heavy Industries (2.53%) added to the gains. Expectations of stronger foreign inflows, supported by Korea’s improving market accessibility, also lent support. However, investor sentiment remained cautious as escalating tensions between the US and Iran drove a sharp rise in oil prices, heightening concerns over inflation and input costs for South Korea’s energy-dependent economy. Renewed disruptions around the Strait of Hormuz also reinforced expectations of elevated market volatility in the near term.
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