The benchmark KOSPI plunged 12.06 percent on Wednesday, surpassing its previous single-day record drop of 12.02 percent following the September 11, 2001 attacks in the US.
South Korea’s stock market has recorded its sharpest decline on record as the fallout from the United States–Israel war on Iran continues to spread.
The benchmark KOSPI plunged 12.06 percent on Wednesday, surpassing its previous single-day record drop of 12.02 percent following the September 11, 2001 attacks in the US.
The index later trimmed some losses but was still down about 10 percent as of 05:00 GMT.
Earlier in the day, financial authorities triggered a 20-minute circuit breaker after losses exceeded the 8 percent threshold required to temporarily halt trading.
The sharp fall came after the KOSPI had already dropped 7.2 percent on Tuesday, marking its worst two-day performance in decades.
The sell-off affected nearly all sectors, including major corporations such as Samsung Electronics, SK Hynix, and LG Electronics.
Shipping and logistics companies were hit hardest amid the effective shutdown of traffic through the Strait of Hormuz, a critical route that carries roughly one-fifth of the world’s oil supply.
Shares of Pan Ocean, HMM, and KSS Line tumbled between 16 and 17 percent.
South Korea’s economy is heavily reliant on energy imports, with about 98 percent of its fossil fuel needs sourced from abroad, according to the US Energy Information Administration.
The market’s sharp downturn follows a strong start to 2026, when the KOSPI surged more than 40 percent in the first two months of the year, outperforming many global markets.
The latest plunge reflects broader economic tremors from the escalating Middle East conflict.
US markets also slipped overnight, with the S&P 500 and the Nasdaq Composite each falling about 1 percent after initially showing resilience.
Meanwhile, US and Israeli forces continued airstrikes on Iran and Lebanon as the war entered its fifth day, while Tehran launched retaliatory attacks targeting Israel and US allies in the Gulf, including Qatar and the United Arab Emirates.
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