Seoul: Seoul stocks experienced a significant decline Thursday as investor sentiment was shaken by U.S. President Donald Trump's renewed threats of military action against Iran, which also caused global oil prices to climb. The Korean won also fell against the U.S. dollar. According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) dropped 244.65 points, or 4.47 percent, closing at 5,234.05. The trading volume was substantial, with 1.42 billion shares exchanged, valued at 32.95 trillion won (approximately US$21.72 billion). The market saw a broad sell-off, with 814 stocks declining compared to just 90 advancing. Institutional and foreign investors were net sellers, offloading 1.45 trillion won and 136.43 billion won worth of shares, respectively. In contrast, individual investors purchased a net 1.21 trillion won. The index initially opened with gains, following an optimistic session on Wall Street due to hopes of a resolution to the monthlong Middle East conflict, which erupte d in late February after U.S.-Israeli strikes on Iran. However, the sentiment quickly soured following Trump's primetime address, in which he threatened severe strikes on Iran, potentially targeting Iranian energy facilities if no agreement is reached. This uncertainty led to a rise in global oil prices, with Brent crude surging over 4 percent to exceed $100 a barrel. In response to the volatility, the Korea Exchange (KRX) activated a sell-side sidecar in the afternoon to temporarily halt program-driven sell orders in KOSPI futures. A similar mechanism was triggered for the Korea Securities Dealers Automated Quotation (KOSDAQ) market, which also saw significant losses, closing down 5.36 percent at 1,056.34. Kang Jin-hyuk, an analyst from Shinhan Securities, remarked, "Despite earlier remarks by U.S. and Iranian leaders suggesting the possibility of an end to the conflict, Trump's latest message indicating the war could continue disappointed investors. Risk-off sentiment is strengthening as expectations for a ceasefire fade." Tech shares were among the hardest hit, with Samsung Electronics dropping 5.91 percent and SK hynix falling 7.05 percent. The downturn extended to other sectors, with Hyundai Motor and Kia posting declines of 4.61 percent and 3.03 percent, respectively. LG Energy Solution and POSCO also saw decreases, alongside Doosan Enerbility and KB Financial. In the shipbuilding sector, HD Hyundai Heavy and Hanwha Ocean experienced notable drops. Bio shares presented a mixed picture, with Samsung Biologics gaining 0.83 percent, while Celltrion fell 4.51 percent. Among the few gainers, defense giant Hanwha Aerospace surged 6.3 percent, and Samsung SDI rose 2.55 percent. The local currency weakened, closing at 1,519.7 won against the U.S. dollar, down 18.4 won from the previous session's close.
