Lead

Seoul stocks fell sharply in late March and early April as the escalating conflict in the Middle East, coupled with U.S. President Donald Trump's threats of strikes against Iran, rattled investor sentiment and pushed up global oil prices. According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) dropped nearly 3 percent on Monday, March 30, and fell again by more than 4 percent on Thursday, April 2, marking a volatile period for South Korean markets.

Coverage Comparison

All three reports, published by Yonhap News Agency at different times, trace the market decline to the intensifying conflict surrounding Iran and its impact on oil supplies and global economic uncertainty. The Monday report highlights heavy foreign selling and concerns about supply disruptions, while the Thursday reports focus on Trump's prime-time address in which he threatened to strike Iran "extremely hard" and warned of targeting Iranian energy facilities. The reports consistently note that the KOSPI opened higher on Thursday, tracking gains on Wall Street, before turning negative after Trump's remarks dashed hopes for a quick resolution to the monthlong conflict.

Key Claims

  • Monday's decline: The KOSPI fell 161.57 points, or 2.97 percent, to 5,277.3, according to Yonhap. The index opened nearly 5 percent lower before paring losses on buying by retail and institutional investors. Foreigners sold a net 2.13 trillion won (US$13.64 billion) worth of shares, while trade volume was moderate at 721.04 million shares worth 20.66 trillion won.
  • Thursday's steeper drop: On April 2, the KOSPI fell 244.65 points, or 4.47 percent, to 5,234.05, per Yonhap. Trade volume was "a bit heavy" at 1.42 billion shares worth 32.95 trillion won (US$21.72 billion), with losers outnumbering winners 814 to 90. Institutional and foreign investors sold a net 1.45 trillion won and 136.43 billion won respectively. A mid-morning report from Yonhap noted the index was down 3.6 percent at 5,281.6 as of 11:20 a.m.
  • Trump's role: Both Thursday reports attribute the sharp decline to Trump's remarks made in a prime-time address, in which he said the United States would "hit them extremely hard over the next two to three weeks" and "bring them back to the Stone Age," while warning that Iranian energy facilities could be targeted if a deal is not reached. These threats, according to Yonhap, pushed Brent crude oil up more than 4 percent to above $100 a barrel.
  • Market safeguards: The Korea Exchange (KRX) activated a sell-side sidecar at around 2:46 p.m. on Thursday, temporarily halting program-driven sell orders in KOSPI futures for five minutes. A similar sidecar was triggered on the tech-heavy KOSDAQ market, which finished the day down 5.36 percent at 1,056.34.
  • Currency movement: The Korean won weakened against the U.S. dollar, a fact noted in both the Monday and Thursday reports.

Perspectives

The reports provide a view of how South Korean markets are reacting to geopolitical developments, but they represent a single wire service's coverage. Analysts quoted in the reports offer some context:

  • Analyst on Monday: Han Ji-young, an analyst at Kiwoom Securities, was quoted as saying the prolonged war is making it "increasingly difficult for market participants to respond amid mixed messages and complicated developments."
  • Analyst on Thursday: Kang Jin-hyuk, an analyst (whose full title is not provided in the extract), said that "Despite earlier remarks by U.S. and Iranian leaders suggesting the possibility of an end to the conflict, Trump's latest message indicating the war could continue disappointed investors."
  • Conflict background: The conflict began in late February following U.S.-Israeli strikes on Iran, according to Yonhap. The war has driven up global oil prices, with concerns over supply disruptions through the Strait of Hormuz and potential Houthi attacks on vessels in the Red Sea. South Korea depends heavily on energy imports, making it particularly vulnerable.
These reports offer a snapshot of market sentiment in South Korea but do not include broader international reactions or the views of U.S. or Iranian officials beyond Trump's remarks. The market's sharp swings reflect the sensitivity of regional investors to headlines from the conflict.