KOSPI Plunges 5% on Soaring Oil Prices; Sidecar Circuit Breakers Triggered

Driven by geopolitical risks in the Middle East and a surge in international oil prices, the domestic stock market experienced a broad sell-off, triggering consecutive sell-side sidecars on both the KOSPI and KOSDAQ. Park Sang-hyun, a researcher at iM Securities, analyzed, "As international oil prices surpassed $100 per barrel, risk factors related to Iran have re-emerged as market anxieties." Previously, the escalation of the Middle East conflict and soaring oil prices served as critical catalysts for the decline of the broader domestic market.

Foreigners and institutions dumped nearly 3.2 trillion won and 2 trillion won respectively, pulling out of the market. Although individual investors stepped in to buy the dip with over 5 trillion won, they were unable to stem the decline. Semiconductor stocks, including Samsung Electronics and SK Hynix, led the market decline, falling by around 7%.

Meanwhile, in a remanded trial at the Seoul Family Court, SK Chairman Chey Tae-won was ordered to pay 944 billion won in property division to his wife, art center Director Noh So-young. In the Seoul foreign exchange market, the won-dollar exchange rate closed at 1,466.6 won, down 0.2 won from the previous trading day.