The benchmark KOSPI dropped more than 2% to around 7,880 on Wednesday, erasing gains from the previous session and mirroring overnight declines on Wall Street amid rising tensions between the United States and Iran. Risk sentiment deteriorated after the US launched new strikes against Iran in retaliation for the downing of an American military helicopter, fueling fears of broader regional instability and driving oil prices higher.
Technology stocks came under pressure following a selloff in US chipmakers, while investors took profits as renewed concerns emerged over stretched valuations after the market’s recent AI-fueled rally. Samsung Electronics (-4.9%) and SK hynix (-4.3%) led the downturn, with notable losses also seen in SK Square (-3.9%) and Hyundai Motor (-2.8%). In contrast, Hanwha Aerospace gained 1.9%, outperforming on expectations of higher defense spending amid elevated geopolitical uncertainty.
