US EditionSouth Korea’s stock market suffers steepest drop in history amid US-Iran war
The Kospi dropped over 12%, led by major tech and auto firms, amid fears of prolonged energy shocks and foreign investor sell-offs, marking the worst day in decades.
- On March 04, 2026, South Korea's Kospi index plunged more than 12, putting the market on track for its worst trading day in decades, amid fears of an escalating Middle East war.
- With the Middle East war escalating, US and Israeli forces strikes against Iran destabilised the region, raising fears of an energy shock as Brent crude traded close to $82 a barrel.
- Foreign selling and forced liquidations accelerated the downturn as Samsung Electronics fell about seven percent and SK Hynix dropped about five percent, deepening losses in the Kospi.
- Trading was temporarily halted as circuit breakers triggered on the Korea Exchange, with the won briefly hitting 1,500 before closing at 1,485.7, and the Bank of Korea vowed to respond to herd-like behaviour.
- Markets are now trading headline to headline as uncertainty mounts, with surging energy costs threatening US Federal Reserve easing and Asian equities falling for a third day amid geopolitical risks.
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75 Articles
Iran war sends Korean stocks tumbling 12%
South Korean shares sank 12% on Wednesday, posting the biggest drop in their 46-year history and wiping half a trillion dollars in value just this week, as fears that the Iran war could cripple Asia's fourth-largest economy sent the won to a 17-year low. Israeli and US forces continued attacking Iran, prompting retaliatory attacks around the Gulf as the conflict spread to Lebanon, rattled global markets and sent oil prices sharply higher. Losses…
South Korean investors panic as world-beating stock gains vanish | Honolulu Star-Advertiser
SEONGNAM, South Korea >> As South Korea’s benchmark KOSPI stock index dived more than 12% to its worst-ever sell-off today, a district known as the Korean Silicon Valley was eerily quiet when it would normally be bustling for the lunchtime rush.
The crisis around Iran is also affecting the world's stock exchanges. South Korea is particularly affected. This is not only due to import dependency, but also to another country that has a special connection to the Middle East.
South Korean stock market plunges over potential Iran-related energy crisis
In a shock for South Korea, the country's KOSPI index dropped by over 12 percent Wednesday in its worst sell off ever. Share prices took a dive as investors panicked about a potential energy crisis if the Strait of Hormuz remains blocked. South Korea, alongside many Asian countries, is especially dependent on Middle Eastern oil, making its businesses vulnerable to the geopolitics of the region.
South Korea's KOSPI Just Had its Worst Crash Ever - Is the S&P 500 In Trouble?
Quick Read South Korean markets plunged overnight. The main South Korean ETF (EWY) fell 8.45% this week to $132.34 but is up 149.17% over the year. S&P 500 ETF (SPY) is down 0.23% YTD at $680.33. Nasdaq 100 ETF (QQQ) is down 2.07% YTD. South Korea’s KOSPI crashed 12% on Iran conflict fears and valuation reset after more than doubling to 6,000, but US markets are shrugging it off as capital rotates to US assets during international stress. Fin…
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