The benchmark KOSPI dropped more than 3% to around 6,685 on Monday, extending its slide for a third consecutive session amid escalating tensions in the Middle East. Crude oil prices surged above $100 per barrel after a vessel was struck in the Strait of Hormuz and Saudi Arabia shut its East–West crude pipeline following drone attacks, intensifying fears of further supply disruptions and higher energy costs for South Korea.
At the same time, renewed doubts about the durability of the AI investment boom weighed heavily on semiconductor stocks, with SK hynix tumbling more than 6% and Samsung Electronics losing nearly 4%. SK Group Chairman Chey Tae-won cautioned that the wave of AI-related spending could develop into a bubble if the substantial capital and resources being deployed fail to deliver adequate returns.
Other notable decliners included SK Square (-7.1%), Hyundai Motor (-3.5%), Doosan Enerbility (-3.1%), Kia Corporation (-2.8%), and Hyundai Mobis (-4.2%).
