South Korean Stocks Plummet Amid Middle East Tensions
Seoul, March 27 – South Korean stocks experienced a sharp decline on Friday, driven by increased risk aversion stemming from renewed concerns regarding tensions in the Middle East. The benchmark Korea Composite Stock Price Index (KOSPI) fell 204 points, or 3.74 percent, to close at 5,256.46 in the first 20 minutes of trading, according to Yonhap news agency.The KOSPI opened 2.93 percent lower, influenced by overnight declines on U.S. markets. U.S. President Donald Trump issued mixed signals about U.S. negotiations with Iran, warning Iranian negotiators to “get serious soon” while later stating that the U.S. and Iran were having “very substantial talks.” The White House also announced an extension of a pause on strikes targeting Iranian power plants and energy infrastructure until April 6. The S&P 500 declined 1.74 percent, and the Nasdaq retreated 2.38 percent.
Large-cap shares experienced broad declines. Samsung Electronics fell 3.72 percent, while SK Hynix retreated 4.82 percent. Hyundai Motor dipped 3.98 percent, and Hanwha Aerospace moved down 4.38 percent. KB Financial shed 3.35 percent.
The Korean won traded at 1,511.5 won against the U.S. dollar, a decrease of 4.5 won from the previous session, as of 9:20 a.m.
Industry Minister Kim Jung-kwan urged private sector cooperation to stabilize industrial supply chains and manage energy demands amid the ongoing Middle East turmoil. In a meeting with major business associations, including the Korea Chamber of Commerce and Industry and the Federation of Middle Market Enterprises of Korea, Minister Kim called for companies to secure alternative supply sources and avoid disruptive actions like collusion and hoarding. He also encouraged voluntary participation in a five-day vehicle rotation system and other energy-saving measures.
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