FX.co ★ South Korea Shares Fall on Budget Uncertainty and US–Iran Tensions

On Monday, the KOSPI index experienced a 1% decline, settling at approximately 2,990, effectively ending the gains from its recent upward trend. This downturn in investor sentiment arose after the government introduced a secondary supplementary budget, valued at 30.5 trillion won ($22.2 billion), to the National Assembly. Concerns over the uncertainty surrounding the budget’s approval and its implementation timeline caused apprehension, particularly as the anticipated stimulus measures and cash handouts might take some time to influence the economy. These domestic uncertainties were exacerbated by intensified geopolitical tensions linked to the US-Iran conflict, which further unsettled the markets, weakened investor confidence, and contributed to a global risk-averse atmosphere. On the corporate side, notable declines were recorded for Samsung Electronics (-2.6%), SK Hynix (-1.8%), LG Energy Solution (-3.8%), Hyundai Motor (-4.1%), and Hanhwa Aerospace (-0.6%). In contrast, Naver rose by 3.2%, and Doosan Enerbility surged by 7.0%, leading the gains.