South Korean stocks plummeted at the market open on Monday amid growing concerns over escalating tensions in the Middle East. The worries stem from the involvement of Iran-backed Houthi militants in Yemen, raising fears of a broader regional conflict.
The benchmark Korea Composite Stock Price Index (KOSPI) initially dropped by 4.73 percent and continued its downward trend, falling 240.94 points, or 4.43 percent, to reach 5,197.93 within the first 15 minutes of trading.
The deepening “risk-off” sentiment is fueled by the conflict, which began in late February following US-Israeli strikes on Iran, now showing signs of further escalation.
Over the weekend, the Houthis launched missiles towards Israel, issuing a warning that their operations would persist until attacks on Iran cease. This marks their first military action since the Middle East conflict began a month ago.
This development triggered a surge in global oil prices as fears of further disruptions to oil supplies intensified.
While US President Donald Trump stated that negotiations with Iran to end the war are underway, Washington’s decision to deploy thousands of troops to the region has heightened concerns about potential ground operations.
Most major market capitalization shares experienced losses.
Market heavyweight Samsung Electronics decreased by 3.9 percent, while chip manufacturer SK hynix fell by 5.42 percent.
Leading automaker Hyundai Motor saw a decline of 5.66 percent, and its affiliate Kia Motors tumbled by 5.52 percent.
Battery giant LG Energy Solution experienced a loss of 1.2 percent, and artificial intelligence investment firm SK Square dipped by 6.07 percent.
Biopharmaceutical company Samsung Biologics decreased by 4.3 percent, and Celltrion went down by 3.25 percent.
Defense industry leader Hanwha Aerospace declined by 4.87 percent, and nuclear power plant builder Doosan Enerbility fell by 5.76 percent.
Leading shipbuilder HD Hyundai Heavy Industries and its competitor Hanwha Ocean lost 6.72 percent and 5.6 percent, respectively.
