The benchmark KOSPI fell more than 1% to around 8,700 on Thursday, pulling back from record highs and mirroring overnight weakness on Wall Street as escalating US–Iran tensions weighed on risk appetite. Iran struck Kuwait International Airport, while Israel signaled that it was prepared, together with the US, to carry out further strikes against Iran if necessary. The flare-up pushed oil prices higher and revived inflation concerns.
The pullback also reflected profit-taking after the index’s exceptional AI-driven rally, with investors turning more cautious amid elevated volatility and mounting worries about stretched valuations. Technology bellwethers Samsung Electronics (-0.6%) and SK Hynix (-3.0%) traded lower, alongside Hyundai Motor (-3.4%), LG Energy Solution (-5.3%), LG Electronics (-15.0%), and Kia Corp (-3.1%).
Losses were partly contained by sustained optimism toward the chip sector after Goldman Sachs raised its 12‑month KOSPI target to 12,000, citing strong AI-related earnings growth.
