South Korean stocks took a sharp dip on Thursday following Wall Street’s overnight losses, driven by uncertainties surrounding U.S.-Iran negotiations in the Middle East. The benchmark Korea Composite Stock Price Index (KOSPI) opened 2.02 percent lower and continued to decline by 2.05 percent to 8,621.46 by 9:15 am. This decline followed the KOSPI’s record high closure at 8,801.49 on Tuesday, with the market being closed on Wednesday due to elections.
U.S. stocks also faced losses due to concerns over potential escalation in U.S.-Iran tensions, impacting the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite Index. In Seoul, major shares were trading negatively, with Samsung Electronics, SK hynix, Hyundai Motor, Samsung Electro-Mechanics, and Samsung Life Insurance all experiencing notable declines. Additionally, the Korean won was trading at 1,523.25 won against the U.S. dollar at 9:15 a.m., marking a decrease of 6.85 won from the previous session.
South Korea’s finance minister emphasized the readiness to implement immediate measures to address foreign exchange market volatility, particularly in response to the Korean won’s recent depreciation against the U.S. dollar. The minister, along with key financial authorities, discussed strategies to manage market fluctuations and pledged swift action when necessary.
