South Korea’s stock market in meltdown amid US-Iran war
#KOSPI#Stock Market Crash#US-Iran War#Strait of Hormuz#Circuit Breaker#Samsung Electronics#Energy Security#Middle East Conflict
📌 Key Takeaways
KOSPI index plunged 12.2%, exceeding post-9/11 market drop
Trading halted for 20 minutes after losses exceeded 8% threshold
Shipping firms suffered steepest losses due to Strait of Hormuz disruption
South Korea's economy highly vulnerable as 98% of fossil fuels are imported
📖 Full Retelling
South Korea's benchmark KOSPI index plummeted as much as 12.2 percent on Wednesday, March 4, 2026, amid the widening fallout of the United States-Israeli war on Iran, marking one of the steepest single-day declines in the country's stock market history, exceeding even the 12.02 percent drop following the September 11, 2001 attacks. The dramatic fall triggered a 20-minute circuit breaker after losses surpassed the 8 percent threshold, temporarily halting trading on the exchange. While the index recovered somewhat in afternoon trading, it still remained down approximately 10 percent by 05:00 GMT. This plunge followed a 7.2 percent decline in the KOSPI on Tuesday, creating the worst two-day market performance in decades for South Korea. The widespread sell-off affected major corporations including Samsung Electronics, SK Hynix, and LG Electronics, with shipping and logistics firms bearing the brunt of the losses due to the disruption of traffic through the strategically vital Strait of Hormuz, which handles approximately 20% of global oil consumption. South Korea's economy, which relies heavily on imported fossil fuels with approximately 98% of its energy needs coming from overseas, faces particular vulnerability to Middle East conflicts. The market meltdown represents a dramatic reversal from the explosive start to 2026, when the KOSPI had gained over 40% in the first two months, significantly outperforming international markets. The economic shockwaves from the conflict extend beyond South Korea, with US stocks dipping about 1% overnight as the US-Israeli bombardment of Iran and Lebanon entered its fifth day, while Tehran retaliated with attacks on Israel and US allies in the Gulf region.
A stock market crash is a sudden dramatic decline of stock prices across a major cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are driven by panic selling and underlying economic factors. They often follow speculation and economic bubbles.
South Korean multinational electronics corporation
Samsung Electronics Co., Ltd. (SEC; stylized as SΛMSUNG; Korean: 삼성전자; lit. Tristar Electronics) is a South Korean multinational major appliance and consumer electronics corporation founded on 13 January 1969 and headquartered in Yeongtong District, Suwon, South Korea.
Strait between the Gulf of Oman and the Persian Gulf
The Strait of Hormuz ( Persian: تنگهٔ هُرمُز Tangeh-ye Hormoz , Arabic: مَضيق هُرمُز Maḍīq Hurmuz) is a strait between the Persian Gulf and the Gulf of Oman. It provides the only sea passage from the Persian Gulf to the open ocean and is one of the world's most strategically important choke points. ...
A circuit breaker is an electrical safety device designed to protect an electrical circuit from damage caused by current in excess of that which the equipment can safely carry (overcurrent). Its basic function is to interrupt current flow to protect equipment and to prevent fire. Unlike a fuse, whic...
The Korea Composite Stock Price Index (KOSPI; Korean: 한국종합주가지수) is the index of all common stocks traded on the Stock Market Division—previously, Korea Stock Exchange—of the Korea Exchange. It is the representative stock market index of South Korea, analogous to the S&P 500 in the United States.
KOS...
Economy | Financial Markets South Korea’s stock market in meltdown amid US-Iran war Benchmark index plummets as much as 12.2 percent, eclipsing single-day plunge after 9/11 attacks in 2001. Listen to this article | 2 mins By John Power Published On 4 Mar 2026 4 Mar 2026 Click here to share on social media Share Save Add Al Jazeera on Google South Korea’s stock market has suffered one of the steepest falls in history amid the widening fallout of the United States-Israeli war on Iran. The benchmark KOSPI index plummeted as much as 12.2 percent on Wednesday, eclipsing the 12.02 percent single-day plunge triggered by the September 11, 2001 attacks on the US and the 9.44 percent drop seen at the height of the 2008 financial crisis. Recommended Stories list of 4 items list 1 of 4 Is the US at war with Iran, and will it put boots on the ground? list 2 of 4 Russia, China raise diplomatic voices against US-Israeli attacks on Iran list 3 of 4 US senators fear ‘boots on the ground’ after Iran war briefing list 4 of 4 US Commerce Secretary Lutnick to testify before Congress about Epstein ties end of list The index recovered some losses in the afternoon and was down about 10 percent as of 05:00 GMT. South Korean financial authorities had earlier activated their 20-minute circuit breaker after losses passed the 8 percent threshold for triggering a halt to trading on the exchange. The plunge followed a 7.2 percent fall in the KOSPI on Tuesday, cementing the worst two-day streak in decades. Losses were spread across the board, hitting corporate giants such as Samsung Electronics, SK Hynix and LG Electronics. But shipping and logistics firms suffered the steepest losses amid the effective halt of traffic through the Strait of Hormuz, which carries about one-fifth of the oil consumed globally. Shares of Pan Ocean, HMM and KSS Line plunged between 17 and 19 percent. South Korea’s economy depends heavily on foreign oil and gas, with about 98 percent of its fossil fuel needs coming from...
