The benchmark KOSPI fell nearly 1% to around 5,805 on Monday, reversing gains from the previous session as mounting geopolitical tensions and higher oil prices weighed on risk appetite. Sentiment deteriorated after US–Iran talks collapsed without an agreement, followed by Washington’s move to impose a naval blockade on Iranian ports, stoking fears of a protracted conflict and potential disruptions to global energy supplies.
Crude oil prices climbed above $100 per barrel, amplifying concerns over inflation and slowing global growth. South Korea remains particularly vulnerable due to its heavy dependence on energy imports, adding to pressure on domestic equities. Foreign investors led the sell-off, targeting large-cap names and accelerating the index’s decline.
Investors trimmed exposure to export-oriented and cyclical sectors in response to the heightened uncertainty. Losses were broad-based across major constituents, including Samsung Electronics (-2.2%), Hyundai Motor (-1.5%), LG Energy Solution (-1.0%), Doosan Enerbility (-2.0%), and KB Financial Group (-0.8%).
