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Seoul Stocks Drop Amid Iran Tensions, Oil Price Swings

South Korean stocks traded lower as investor caution persisted due to oil market volatility stemming from the US-Iran conflict. The International Energy Agency's plan to release reserves did little to ease long-term supply concerns at the Strait of Hormuz. Finance Minister Koo Yun-cheol pledged to use all financial and regulatory tools to support businesses facing heightened economic uncertainty. Business leaders, including SK Group's chairman, vowed to actively cooperate with the government's stabilization efforts.

Key Points: Seoul Shares Fall on Iran War, Oil Price Uncertainty

  • KOSPI fell 0.78%
  • Oil reserve plan fails to calm markets
  • Refiners gain while tech stocks drop
  • Government pledges full business support
  • Won weakens against US dollar
2 min read

Seoul shares down amid Iran uncertainties

South Korea's KOSPI falls as Middle East crisis fuels oil and market volatility. Finance Minister pledges business support.

"As the Middle East situation has continued for over two weeks, global economic uncertainty is higher than ever. - Koo Yun-cheol"

Seoul, March 12

South Korean stocks continued to trade lower late on Thursday morning as investors sat on the sidelines amid lingering oil price swings sparked by the US-Iran war.

The benchmark Korea Composite Stock Price Index (KOSPI) fell 43.49 points, or 0.78 percent, to 5,566.46 as of 11:20 a.m.

The International Energy Agency announced a plan to release oil reserves to ease woes over supply disruptions at the Strait of Hormuz, though investors remained concerned about potential long-term instability at the key waterway, reports Yonhap news agency.

Top tech giant Samsung Electronics fell 1.37, and SK hynix shed 1.36 percent.

Brokerage houses traded lower, with Mirae Asset Securities falling 1.68 percent and Kiwoom Securities losing 0.33 percent.

Refiners, on the other hand, traded higher, with SK Innovation advancing 2.59 percent and S-Oil gaining 1.92 percent.

Leading battery maker LG Energy Solution rose 0.54 percent, while Samsung SDI lost 0.62 percent.

The Korean won was trading at 1,478.9 won against the U.S. dollar, down 12.4 won from the previous session.

Meanwhile, the government will provide full support for businesses by using all available measures to counter heightened economic uncertainty stemming from the Middle East crisis, Finance Minister Koo Yun-cheol said on Thursday.

"As the Middle East situation has continued for over two weeks, global economic uncertainty is higher than ever," Koo said at the inaugural meeting of a consultative body formed between the finance ministry and six major business lobby groups.

He added that the government will mobilise financial, tax and regulatory tools to provide full-scale support for businesses to expand their international presence.

Koo also emphasised the importance of startups, promising expanded support and incentives to help them grow into global unicorns.

SK Group Chairman Chey Tae-won, who leads the Korea Chamber of Commerce and Industry, said the business community would actively respond to the government's efforts.

- IANS

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Reader Comments

R
Rohit P
Interesting to see refiners like SK Innovation gaining while tech stocks fall. Reminds me of how Reliance sometimes moves here. Volatility is the name of the game when oil is involved. The Korean government's promise of support is a good move – proactive steps are needed.
A
Aman W
The focus on startups and helping them become "global unicorns" is the key takeaway for me. India is also betting big on its startup ecosystem. Geopolitical crises are unfortunate, but they also force economies to innovate and support new sectors. 👍
S
Sarah B
While the government's support plan sounds comprehensive, I hope it's implemented effectively and doesn't just end up as a bailout for the biggest conglomerates like the SK Group. True resilience comes from supporting SMEs and diverse businesses, not just the chaebols.
V
Vikram M
A 0.78% fall in KOSPI is significant. When major economies face headwinds, it affects emerging markets like ours too. Our finance ministry should also be preparing contingency plans. Energy security is not just a Western or East Asian concern; it's a global one.
K
Kavya N
The won losing value against the dollar is a worry. Our rupee also feels the pressure when oil prices swing. It directly impacts inflation and the common person's budget. Hope for peaceful resolutions in the Middle East, for everyone's sake. 🙏

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