Lead

South Korean stocks plunged more than 4% on Tuesday, extending losses for a fourth consecutive session, as escalating tensions in the Middle East and renewed S. threats against Iran rattled investor sentiment. The benchmark Korea Composite Stock Price Index (KOSPI) fell 84 points, or 26%, to close at 46, according to Yonhap News Agency. The Korean won also weakened sharply against the S. dollar, hitting a 17-year low.

Coverage Comparison

Both reports from Yonhap News centered on the impact of the -Iran conflict on South Korean financial markets, but they highlighted different trading days and specific triggers. The first report, covering Tuesday's session, emphasized heavy foreign selling and Trump's renewed threats against Iran, including a warning to "completely obliterate" Iran's Kharg Island if a peace deal is not reached. The second report, from Thursday's trading, attributed the decline to Trump's prime-time address, in which he said the S. would hit Iran "extremely hard over the next two to three weeks" and warned of potential strikes on Iranian energy facilities.

Both articles noted that the conflict, which began in late February following -Israeli strikes on Iran, showed no signs of abating, with the Houthi militants in Yemen having joined the war over the weekend, according to one report. The reports also highlighted rising global oil prices as a contributing factor to market jitters.

Key Claims

  • Seoul stocks fell over 4% on Tuesday, with the KOSPI dropping 84 points 26%) to 46, as reported by Yonhap. A separate Yonhap report on Thursday noted a 65-point 47%) drop to 05.
  • The Korean won weakened sharply against the S. dollar to a 17-year low, according to both reports.
  • Foreign investors sold a net 84 trillion won worth of shares on Tuesday, as per Yonhap. On Thursday, institutional and foreign investors sold a net 45 trillion won and 43 billion won, respectively.
  • S. President Donald Trump renewed threats against Iran, with no end in sight to the monthlong Middle East war, a claim carried by multiple reports.
  • Iran-backed Houthi militants in Yemen joined the war over the weekend, stoking fears of further disruptions to global oil supplies, according to a single Yonhap report.
  • Market bellwether Samsung Electronics retreated 16% to 167,200 won on Tuesday, as per Yonhap.
  • On Thursday, the Korea Exchange (KRX) activated a sell-side sidecar, temporarily halting program-driven sell orders in KOSPI futures for five minutes, as reported by Yonhap.
  • Bond prices were also affected, with the yield on three-year Treasurys rising 7 basis points to 477% on Thursday, according to Yonhap.