South Korea's Kospi falls as oil surges on Iran tensions
South Korea’s stock market opened sharply lower on Monday as international oil prices surged after hawkish remarks attributed to Iran’s new top leader. The Kospi opened around 5,412.39, down about 3.1% from the prior session’s close of 5,583.25. The Kosdaq started at 1,122.28, down about 2.3% from the previous close of 1,148.40. The won/dollar rate also moved higher, opening at 1,490.6 won per dollar, up 9.4 won from the prior close of 1,481.2.
By 9:21 a.m. local time, the Kospi had fallen further to about 5,462.59, down 2.16% from the previous close. Foreign investors and domestic institutions were net sellers, while individual investors bought net. The Kosdaq was at around 1,138, down roughly 0.8% from the prior close of 1,148.40.
Overseas markets reflected the spillover from higher energy costs and Middle East headlines. In the U.S., major indices closed lower on the previous session as crude oil jumped, with the S&P 500 down about 1.5%, the Dow Jones Industrial Average down around 1.6%, and the Nasdaq Composite down about 1.8%. Oil prices climbed past $100 per barrel for the first time since August 2022, driven by Tehran’s stance on regional tensions.
Korea-focused analysts cautioned that the surge in oil and related credit concerns could weigh on sentiment. Han Ji-young, a researcher at Kiwoom Securities, noted a roughly 10% surge in international oil prices and private-credit anxiety that contributed to a sell-off in futures tied to Korea’s stock market, signaling that investors would continue to monitor oil movements and Middle East developments.
In the domestic market, several sectors moved lower on the opening, led by electronics, securities, manufacturing, medical devices, and insurance, each down around 3% or more. Chemicals, pharmaceuticals, financials, transport and logistics, machinery, and telecommunications fell by over 2%, while construction and entertainment held up relatively better, trading in stronger or near-flat territory compared with the broader market.
Large-cap leaders also declined. LG Energy Solution fell about 5%, while Kia, Samsung Electronics, SK Square, and SK Hynix were each down more than 3%. Hyundai Motor and Samsung Biologics slipped around 2%, with Doosan Enerbity and Hanwha Aerospace down modestly. HD Hyundai Heavy Industries and KB Financial hovered near the flat line.
On the smaller-cap Kosdaq, the index slipped 0.82% to 1,138.98. Foreign investors were net sellers to the tune of about 316 billion won, while individuals and institutions bought 124 billion won and 272 billion won, respectively. Within the Kosdaq, several high-profile technology and biotech names showed notable moves: EcoPro BM fell about 5%, EcoPro itself down around 3%, Alteogen, SamcheonDang Pharmaceutical, and Lino Industries down roughly 2%, Rainbow Robotics and Kolon TissueGene down about 1%, while CareGen was broadly flat. ABL Bio traded higher on the day, and other biotech names such as LigacBio and Peptron rose more than 4%; Borono jumped roughly 7%.
Why this matters to U.S. readers: Korea’s stock market is highly sensitive to global energy prices and regional security dynamics, given Korea’s export-led economy and its role as a major hub for semiconductors, batteries, and high-tech components used by U.S. manufacturers. A sustained rise in oil prices can influence inflation, transportation costs, and supply chains that rely on energy-intensive industries. At the same time, movements in Korean large caps—Samsung Electronics, SK hynix, and LG Energy Solution among them—affect global technology supply chains and capital markets, given their prominence in memory chips and electric-vehicle batteries. Heightened Middle East tensions and rapid shifts in crude prices introduce spillovers to U.S. markets, pricing, and corporate planning, especially for companies dependent on global energy and cross-border electronics manufacturing.