South Korean stocks opened lower on Friday due to profit hunting after a recent rally and escalating military tensions in the Middle East following clashes between the United States and Iran. The benchmark Korea Composite Stock Price Index (KOSPI) started 1.82 percent down, losing 163.99 points to 7,326.06 at 9:15 a.m. The index had been setting record highs for three consecutive sessions until Thursday.
Overnight, the U.S. and Iran clashed in the Strait of Hormuz, casting doubts on the peace talks between Washington and Tehran. Iran alleged that the U.S. targeted its ships in the strait, while the U.S. military claimed self-defense after an attack by Iran on its navy destroyers passing through the waterway. Wall Street closed lower, with the Dow Jones Industrial Average, S&P 500, and Nasdaq composite declining.
In Seoul, most shares opened lower, with market leaders like Samsung Electronics and SK hynix experiencing declines. LG Energy Solution, Doosan Enerbility, Hyundai Heavy Industries, and Hanwha Aerospace also saw drops in their stock prices. The Korean won was trading at 1,461.15 won against the U.S. dollar at 9:15 a.m., down 7.15 won from the previous session.
Meanwhile, the government decided to freeze the price ceilings on fuel products for the third consecutive time to address the volatility in global energy prices. This move is aimed at easing living costs for the general public. The price caps for regular gasoline, diesel, and kerosene supplied to gas stations will remain unchanged for the next two weeks, according to the Ministry of Trade, Industry, and Resources.
