23.03.202601:28:19UTC+00South Korean Shares Plunge on Middle East Risks

The benchmark KOSPI plunged more than 5% to around 5,480 on Monday, mirroring a sharp regional selloff as tensions in the Middle East escalated. The US issued a 48-hour ultimatum, threatening to strike Iran’s energy infrastructure if the Strait of Hormuz is not fully reopened. In response, Iran warned it could shut the critical oil chokepoint and target regional facilities, intensifying fears of a major supply disruption and keeping crude prices elevated.

These developments weighed heavily on Korean equities, given South Korea’s heavy dependence on energy imports. Persistently higher oil prices are expected to stoke inflation and compress corporate profit margins. The Korean won also weakened beyond 1,500 per dollar to its lowest level in more than a decade, underscoring sustained foreign outflows and tighter financial conditions.

Losses were broad-based among large-cap names, including Samsung Electronics (-6.4%), SK hynix (-7.8%), Hyundai Motor (-5.4%), LG Energy Solution (-4.8%), SK Square (-11.4%), and HD Hyundai Heavy Industries (-7.3%).