South Korean Shares Slide on Middle East Risks

2026-09-02 01:43 By Erika Ordonez 1 min. read

The benchmark KOSPI slipped 3.99% to close at 6,563 on Wednesday, reversing gains from the previous session, as escalating US-Iran hostilities pushed oil prices higher and weighed on global risk sentiment.

Brent crude climbed above $95 per barrel while WTI rose above $90, raising concerns over energy costs and inflation amid risks of disruptions to oil flows through the Strait of Hormuz.

Additionally, the US 10-year Treasury yield climbed to its highest level since January 2025, adding pressure on equities and technology stocks.

Samsung Electronics and SK hynix plunged 4.02% and 4.67%, respectively.

Notable declines were also recorded in SK Square (-7.69%), Hyundai Motor (-5.74%), LG Energy Solution (-5.45%), Hanwha Aerospace (-3.78%), Doosan Enerbility (-5.65%), and Kia Corporation (-5.26%).

South Korea’s annual inflation rose to 3.1% in August from 2.8% in July, although the government estimated price growth at around 2.5% excluding a temporary mobile-bill base effect.



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South Korean Shares Slide on Middle East Risks
The benchmark KOSPI slipped 3.99% to close at 6,563 on Wednesday, reversing gains from the previous session, as escalating US-Iran hostilities pushed oil prices higher and weighed on global risk sentiment. Brent crude climbed above $95 per barrel while WTI rose above $90, raising concerns over energy costs and inflation amid risks of disruptions to oil flows through the Strait of Hormuz. Additionally, the US 10-year Treasury yield climbed to its highest level since January 2025, adding pressure on equities and technology stocks. Samsung Electronics and SK hynix plunged 4.02% and 4.67%, respectively. Notable declines were also recorded in SK Square (-7.69%), Hyundai Motor (-5.74%), LG Energy Solution (-5.45%), Hanwha Aerospace (-3.78%), Doosan Enerbility (-5.65%), and Kia Corporation (-5.26%). South Korea’s annual inflation rose to 3.1% in August from 2.8% in July, although the government estimated price growth at around 2.5% excluding a temporary mobile-bill base effect.
2026-09-02
South Korean Shares End Higher
The benchmark KOSPI rose 0.23% to close at 6,836 on Tuesday, extending gains for a second straight session as technology shares recovered from early losses. Samsung Electronics rose 0.38%, while SK hynix advanced 1.14%, alongside gains in SK Square (2.89%), Samsung C&T (3.72%), Shinhan Financial Group (2.02%), and HD Hyundai Heavy Industries (0.78%). The rebound was supported by strong August export data, with total shipments surging 68.7% year-on-year to $98.25 billion and semiconductor exports jumping 209% to a record $46.65 billion on robust AI infrastructure demand. The data reinforced expectations for strong earnings among major chipmakers and helped lift technology shares in afternoon trading. Meanwhile, renewed US-Iran clashes, higher oil prices and hawkish remarks from Fed Chair Kevin Warsh continued to weigh on sentiment, raising concerns over inflation and further interest-rate increases.
2026-09-01
South Korean Shares Fall on Middle East Escalation
The benchmark KOSPI edged down to around 6,800 on Tuesday, reversing gains from the previous session, as renewed US-Iran military clashes weighed on investor sentiment and pushed oil prices higher. The escalation raised concerns over renewed inflationary pressures and tighter global monetary policy, while losses on Wall Street added to the pressure on Korean equities. Among major decliners were Samsung Electronics (-0.3%), Hyundai Motor (-1.1%), Hanwha Aerospace (-3.3%), KB Financial Group (-1.4%), and Doosan Enerbility (-1.8%). Meanwhile, strong domestic trade data offered some support to the market outlook, as South Korea’s exports jumped 68.7% year-on-year to $98.25 billion in August, marking the 15th consecutive month of growth. Semiconductor exports surged 209% to $46.65 billion, driven by continued AI infrastructure spending by major technology companies, reinforcing expectations for solid earnings among Korea’s major semiconductor companies.
2026-09-01