Middle East Uncertainty Triggers Record Drop in Korean Market

Seoul – A volatile start to the week saw South Korea’s main stock index, the KOSPI, tumble almost 9% on Monday, a reaction to heightened geopolitical friction in the Middle East. The index fell 669.01 points to settle at 6,806.93, after briefly sinking to 6,783.43.

Trading activity remained vigorous, with 469.86 million shares exchanging hands, valued at roughly 39.8 trillion won (about $26.5 billion). The market breadth was lopsided: 713 stocks lost ground while only 179 posted gains.

Large‑scale sellers dominated the scene. Institutional investors off‑loaded 2.22 trillion won, foreign investors sold 1.7 trillion won, whereas retail investors stepped in with purchases worth 3.9 trillion won.

Opening down 0.85%, the market continued its slide, prompting the seventh activation of the circuit‑breaker this year and a temporary 20‑minute halt to KOSPI trading.

Across the Pacific, U.S. equity markets gained on Friday, buoyed by a multi‑billion‑dollar ADR offering from South Korean chipmaker SK Hynix. Both the Dow Jones and the Nasdaq rose 0.29%. SK Hynix ADRs closed at $168, substantially above the $149 pricing of the offering.

Analysts pointed out that despite the positive U.S. start, SK Hynix shares fell as investors booked profits and shifted into the ADRs. The fresh flare‑up between the United States and Iran amplified market nerves, reducing appetite for risk assets.

Tech leaders suffered the steepest losses. Samsung Electronics dropped 10.7% to 254,500 won, while rival SK Hynix fell 15.37% to 1,845,000 won. Hyundai Motor slipped 2.95% to 444,000 won, and defense giant Hanwha Aerospace declined 3.21% to 936,000 won.

On the upside, LG Energy Solutions rose 0.77% and SK Innovation surged 7.09% to 110,200 won.

The Korean won was quoted at 1,503.4 per U.S. dollar at 3:30 p.m., a modest 2‑won depreciation from the previous trading day.