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2026.03.0401:53:25UTC+00South Korean Shares Plunge Near 3-Week Low

The benchmark KOSPI tumbled more than 6% to around 5,440 on Wednesday, marking its lowest level in nearly three weeks, as escalating tensions in the Middle East drove oil prices higher and intensified global risk aversion. Crude prices surged after Iran disrupted shipping in the Strait of Hormuz, with Brent settling above $81 per barrel and WTI nearing $75. The spike in energy costs has heightened concerns about rising import bills and inflation in energy-dependent South Korea. Additional downward pressure came from overnight losses on Wall Street.

Declines were led by major large-cap exporters, including Samsung Electronics (-5.1%), SK hynix (-3.9%), Hyundai Motor (-7.2%), Kia Corp (-8.1%), LG Energy Solution (-5.0%), and SK Square (-7.6%). The Korean won also weakened further, exacerbating foreign capital outflows and intensifying imported inflation pressures, following record net equity sales by overseas investors in February.

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