South Korean stocks saw a significant decline on Monday morning due to investor caution surrounding the fragile US-Iran ceasefire and increasing oil prices. The benchmark Korea Composite Stock Price Index (KOSPI) fell by 2.03 percent to 8,240.43 by late morning, with tech shares leading the losses.
Oil prices surged following fresh strikes between the United States and Iran over the weekend, raising worries about energy supplies and shipping routes through the Strait of Hormuz. Despite recent hostilities in the Gulf, both sides have agreed to cease fire and engage in talks.
Investor sentiment was also impacted by the upcoming announcement of long-term investment plans by tech giants Samsung Electronics and SK hynix at a meeting chaired by President Lee Jae Myung. Market leaders like Samsung Electronics and SK hynix experienced declines of 5.15 percent and 3.29 percent, respectively.
In other market movements, artificial intelligence investment firm SK Square dropped by 7.62 percent, while battery manufacturer LG Energy Solution saw a significant increase of 14.18 percent. The Korean won was trading at 1,542.65 won against the U.S. dollar.
Additionally, the finance ministry revealed plans to issue 160 billion won ($104 million) in government bonds for individual investors next month. This initiative is part of a larger strategy to sell 2 trillion won in government bonds for individuals this year, following the sale of 1.2 trillion won worth of Treasuries for retail investors last year.
