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Seoul Stocks Plunge 3.7% as Mideast Tensions Rattle Global Markets

South Korean stocks opened sharply lower, with the KOSPI index falling 3.74 percent, mirroring a steep overnight decline on U.S. markets. The sell-off was driven by renewed risk-off sentiment stemming from U.S. President Donald Trump's mixed signals regarding negotiations with Iran. In Seoul, large-cap shares including Samsung Electronics, SK hynix, and Hyundai Motor all traded significantly lower. Meanwhile, Industry Minister Kim Jung-kwan called for private sector cooperation to stabilize supply chains and manage energy demands amid the ongoing Middle East turmoil.

Key Points: Seoul Stocks Drop Sharply on Renewed Middle East Tensions

  • KOSPI plunged 3.74% at open
  • U.S. markets fell sharply overnight
  • Trump's mixed signals on Iran negotiations rattled investors
  • Major Korean large-cap stocks traded lower across the board
2 min read

Seoul stocks open sharply lower on renewed Mideast tensions

South Korea's KOSPI fell sharply amid global risk-off sentiment triggered by U.S.-Iran tensions and a Wall Street sell-off. Key sectors plummeted.

"better get serious soon, before it is too late - Donald Trump"

Seoul, March 27

South Korean stocks opened sharply lower on Friday on increased risk-off sentiment following renewed concerns over tensions in the Middle East.

After opening 2.93 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) fell 204 points, or 3.74 percent, to 5,256.46 in the first 20 minutes of trading, reports Yonhap news agency.

Overnight, U.S. markets suffered a sharp drop, as U.S. President Donald Trump gave mixed signals about where Washington stands in its negotiations with Iran.

Trump warned Iranian negotiators on Thursday (local time) they "better get serious soon, before it is too late," only to later say that the U.S. and Iran are having very "substantial talks."

The White House also announced it will extend a pause on strikes on Iranian power plants and energy infrastructure until April 6.

The S&P500 fell 1.74 percent while the tech-heavy Nasdaq retreated 2.38 percent. In Seoul, large-cap shares were trading lower across the board. Chip giant Samsung Electronics fell 3.72 percent, while its rival SK hynix retreated 4.82 percent.

Top carmaker Hyundai Motor dipped 3.98 percent, defence giant Hanwha Aerospace moved down 4.38 percent, and major financial group KB Financial shed 3.35 percent.

The Korean won was trading at 1,511.5 won against the U.S. dollar, down 4.5 won from the previous session, as of 9:20 a.m.

Meanwhile, Industry Minister Kim Jung-kwan on Friday called for private sector cooperation to help stabilise industrial supply chains and manage energy demands amid persisting turmoil in the Middle East, his office said.

In a meeting with major business associations, Kim urged companies to step up efforts to secure alternative supply sources and refrain from disruptive actions, such as collusion and hoarding, according to the Ministry of Trade, Industry and Resources.

The meeting was attended by senior officials from six business associations, including the Korea Chamber of Commerce and Industry and the Federation of Middle Market Enterprises of Korea.

Kim also called for voluntary participation by private companies in a five-day vehicle rotation system and other energy-saving measures.

- IANS

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Reader Comments

P
Priya S
Samsung and Hyundai are such big names here in India too. A 4% drop for them is huge! Hope this doesn't affect their operations or pricing in our market. Just bought a new Samsung phone last month 😅
R
Rohit P
The Middle East tensions affect everyone. Oil prices will shoot up again, and we in India will feel it directly at the petrol pump. Government should have a solid plan for energy security beyond just asking people to save.
S
Sarah B
Interesting to see the Korean minister's approach - calling for private sector cooperation and a vehicle rotation system. Could similar voluntary measures work in Indian cities like Delhi or Bangalore during a crisis?
V
Vikram M
Trump's mixed signals creating market havoc... some things never change. Global investors need clarity, not this rollercoaster. At least our RBI and Finance Ministry are usually more consistent in their communication.
K
Karthik V
A 3.74% drop in 20 minutes is brutal for retail investors. This is why my father always said to invest for the long term in fundamentally strong companies and not panic with daily news. Global events will always cause volatility.

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