2026.03.1901:50:54UTC+00South Korean Shares Slide on Oil Shock

South Korea’s benchmark KOSPI index fell more than 2% to around 5,770 on Thursday, snapping a three-day winning streak, as escalating tensions in the Middle East drove oil prices higher. Brent crude rose above $107 per barrel after attacks on key energy infrastructure and threats to major supply routes, heightening concerns over inflation and the rising cost of energy imports for South Korea.

The Federal Reserve’s decision to leave interest rates unchanged added to the downward pressure, with investors weighing the inflationary impact of more expensive oil. The Korean won weakened beyond the 1,500 mark against the US dollar, signaling capital outflows and increased external vulnerability.

Sentiment across Asia tracked overnight losses on Wall Street, reinforcing a risk-off mood in regional markets. Heavyweight technology names led the declines, including Samsung Electronics (-3.6%) and SK hynix (-4.3%). Losses also extended to major cyclicals and growth stocks such as Hyundai Motor (-3.3%), LG Energy Solution (-2.4%), SK Square (-3.5%), Kia Corporation (-2.0%), and HD Hyundai Heavy Industries (-3.4%).