Seoul shares open sharply lower on Wall Street losses, renewed Iran tension; won falls

South Korean stocks experienced a sharp decline on Thursday, opening 2.02% lower and closing at 8,621.46 after losing 180.03 points by 9:15 a.m. The market followed Wall Street’s overnight losses, which were fueled by concerns over escalating tensions between the United States and Iran, threatening peace negotiations in the Middle East. The Korea Composite Stock Price Index (Kospi) had reached an all-time high of 8,801.49 on Tuesday, but the market remained closed on Wednesday due to an election. Large-cap stocks led the decline, with Samsung Electronics dropping 2.08%, SK hynix falling 2.54%, and Hyundai Motor losing 4.25%. Samsung Electro-Mechanics also saw a 2.81% decrease, while Samsung Life Insurance tumbled 12.91%. The Korean won depreciated to 1,523.25 against the US dollar, down 6.85 won from the previous session. The decline in the currency mirrored broader market sentiment, as investors reacted to geopolitical uncertainty. US stocks had already closed lower, with the Dow Jones Industrial Average down 1.21%, the S&P 500 losing 0.74%, and the Nasdaq Composite Index shedding 0.89%. Analysts attributed the sell-off to fears that heightened US-Iran tensions could derail diplomatic efforts, increasing volatility in global markets. The local market’s reaction underscored its sensitivity to both regional and international developments, particularly in sectors tied to technology and automotive production.