South Korean Shares Fall on Middle East Tensions

The benchmark KOSPI fell more than 3% to around 7,220 on Monday, reversing gains from the previous session, as renewed US-Iran military strikes and a surge in oil prices dampened global risk appetite. Tehran claimed it had closed the Strait of Hormuz, raising concerns over potential disruptions to oil shipments. The selloff was led by technology shares, with SK Hynix (-8.1%) tumbling as investors locked in profits following its Nasdaq debut on Friday, while analysts cited easing optimism over near-term earnings and slower-than-expected HBM4 shipment growth. Samsung Electronics (-3.7%), SK Square (-10.2%), Samsung Electro-Mechanics (-11.4%), and HD Hyundai Heavy Industries (-1.9%) also declined. Broader sentiment toward South Korea’s semiconductor sector remained fragile after the KOSPI shed almost 8% last week. Meanwhile, the Bank of Korea said the AI-driven chip supercycle remains intact, citing continued supply constraints and robust global demand for advanced memory chips.

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