11.09.202601:44:25UTC+00South Korean Shares Extend Slide

The benchmark KOSPI dropped more than 2% to around 6,850 on Friday, extending the previous session’s losses as surging oil prices and rising US Treasury yields weighed on sentiment. WTI crude climbed above $100 per barrel and Brent exceeded $107 amid escalating US–Iran tensions, stoking fears of renewed inflationary pressures and additional disruptions to global oil supplies.

At the same time, the US 10-year Treasury yield advanced to its highest level since October 2023, reinforcing expectations of an interest rate hike at next week’s Federal Reserve meeting. Tech heavyweights Samsung Electronics and SK hynix led the selloff, each falling nearly 4%, while SK Square dropped 4.9%, Hyundai Motor declined 1.9%, and LG Energy Solution lost 2.2%.

On the monetary policy front, the Bank of Korea signaled it will carefully assess the timing and pace of any additional rate increases, with inflation still above target and headline CPI accelerating to 3.1% in August. Meanwhile, South Korea’s exports surged 83% year-on-year in the first 10 days of September, driven primarily by a 270% jump in semiconductor shipments amid robust demand related to artificial intelligence.