31.03.202601:35:00UTC+00South Korean Shares Plunge Further

The benchmark KOSPI dropped more than 2% to around 5,140 on Tuesday, marking a fourth consecutive decline amid escalating tensions in the Middle East. Investor sentiment deteriorated after US President Donald Trump threatened to target Iran’s oil fields and key export infrastructure if no agreement is reached soon, while persistent disruptions to shipping through the Strait of Hormuz intensified worries over global energy supplies.

Crude oil prices climbed above $100 per barrel, stoking fears of higher inflation and slower growth in South Korea’s energy-dependent economy. The surge in energy costs undermined global risk appetite, prompting heavy foreign selling, driving the Korean won to a 17-year low, and adding further pressure on domestic assets. As a result, the KOSPI is now down roughly 15% for the month.

Losses were broad-based across large-cap names, with notable declines in Samsung Electronics (-3.5%), SK hynix (-5.8%), Hyundai Motor (-3.3%), LG Energy Solution (-2.9%), SK Square (-6.4%), Hanwha Aerospace (-4.2%), and Kia Corporation (-3.6%).