Seoul, South Korea — The Seoul stock market closed lower on Monday, dropping by 0.42 percent due to increased geopolitical tensions in the Middle East following recent attacks between Iran and Israel. The Korean won also declined sharply, reaching a 17-month low against the U.S. dollar.
According to Yonhap News Agency, the Korea Composite Stock Price Index fell 11.39 points to settle at 2,670.43, after briefly dipping to 2,641.16. Trading volume was recorded at 552 million shares worth approximately 10.3 trillion won ($7.45 billion). The market's downturn was influenced by investors shying away from riskier assets after Iran's drone and missile attacks in response to an Israeli airstrike. Choi Bo-won, a researcher at Korea Investment and Securities, noted that concerns about Israel's potential retaliation are high. "While any immediate retaliation is expected to be delayed, it will take some time for the market to be relieved," Choi explained.
Sector-wise, oil refiners saw gains anticipating higher petrochemical prices, whereas air carriers and major tech companies like Samsung Electronics and LG Energy Solution experienced losses due to the unstable geopolitical climate. The won closed at 1,384 against the dollar, the weakest since November 2022.