SOUTH KOREA'S LEADING INDEX SEES SHARPEST DROP IN OVER TWO YEARS

South Korea’s benchmark KOSPI index plunged more than 7% on Tuesday following the escalation of the conflict in the Middle East, marking its steepest drop in more than two years.

Investors are concerned that persistently high crude oil prices could weigh on the economy, which is heavily reliant on the semiconductor sector.

Shares in Samsung Electronics, the country’s largest company, fell nearly 10%, while chipmaker SK Hynix tumbled 11.5%.

The sharp losses were also partly attributed to the fact that South Korean markets were closed on Monday for a public holiday, with Tuesday’s trading reflecting pent-up declines.

Elsewhere in Asia, Japan’s more diversified Nikkei 225 dropped around 3%, while Hong Kong’s Hang Seng Index slipped just over 1%.

In 2025, the South Korean benchmark index was one of the strongest global stock markets of the year thanks to high global demand for chips. Despite the price slump, the KOSPI is still up more than 34% since the beginning of the year.

2026-03-03T13:03:55Z