Seoul Shares Plunge Over 8 Percent as Middle East Conflict Rattles Markets

Seoul Shares Plunge Over 8 Percent as Middle East Conflict Rattles Markets​

KOSPI Extends Losses Following Sharp Previous Session Decline​

Seoul, March 4: South Korean equities deepened their slide late Wednesday morning, with the benchmark Korea Composite Stock Price Index or KOSPI tumbling more than 8 percent as escalating tensions in the Middle East continued to weigh heavily on investor sentiment.

After opening 3.44 percent lower, the KOSPI extended its losses, falling 468.98 points, or 8.1 percent, to 5,322.93 by 11:45 a.m. The sharp drop followed a plunge of over 7.24 percent in the previous session, underscoring sustained selling pressure in the market.

Korea Exchange Activates Circuit Breakers Amid Volatility​

The Korea Exchange triggered circuit breakers shortly after the KOSPI slid beyond the 8 percent mark, reflecting heightened geopolitical concerns.

Earlier in the session, the exchange implemented a five minute sell side mechanism immediately after the opening bell, temporarily halting program driven sell orders in KOSPI futures. A similar safeguard was activated on the tech heavy KOSDAQ market.

Global Tensions Escalate After US and Israel Strikes on Iran​

The market turmoil follows coordinated strikes by the United States and Israel on Iran over the weekend, which resulted in the death of Iran’s Supreme Leader Ayatollah Ali Khamenei. US President Donald Trump signaled the possibility of a prolonged military campaign, intensifying concerns about broader regional instability.

Overnight on Wall Street, the Dow Jones Industrial Average declined 0.83 percent, while the tech heavy Nasdaq Composite fell 1.02 percent.

Foreign Investors Lead Sell-Off in Seoul​

Foreign investors were net sellers of 1.17 trillion won, equivalent to 792 million US dollars. This outflow offset net purchases by institutions and retail investors, which stood at 461.33 billion won and 638.82 billion won respectively.

Most large cap shares in Seoul traded sharply lower.

Market bellwether Samsung Electronics plunged 7.28 percent, while chipmaker SK Hynix dropped 5.43 percent.

Top automaker Hyundai Motor declined 10.92 percent and its affiliate Kia fell 10.42 percent.

Defence manufacturer Hanwha Aerospace slid 11.03 percent, while leading refiner SK Innovation dropped 12.83 percent.

Flag carrier Korean Air shed 5.75 percent and shipping major HMM tumbled 16.73 percent.

Select Stocks Buck the Trend​

Despite the broad based sell off, some counters registered gains. Defence firm LIG Nex1 rose 3.63 percent, while refiner S-Oil jumped 18.05 percent.

Meanwhile, the Korean won weakened to 1,477.15 per US dollar as of 11:45 a.m., down 11.05 won from the previous session, reflecting continued pressure in the currency market alongside equity declines.