KOSPI drops 125 points as US strikes on Iran rattle Seoul markets
Synopsis
Fresh US military strikes on Iran — triggered by the shooting down of an American Apache helicopter in the Strait of Hormuz — sent Seoul's KOSPI tumbling over 125 points on Wednesday morning. Combined with an overnight AI valuation scare on Wall Street, the session exposed just how quickly a Middle East flashpoint can reprice Asian tech-heavy indices.
Key Takeaways
The KOSPI shed 125.98 points (1.56%) to 7,970.95 in early trade on 10 June , opening as much as 2.43% lower.
The US reportedly struck Iran after an American Apache helicopter was shot down in the Strait of Hormuz .
Samsung Electronics fell 2.8% , SK hynix dropped 2.08% , and Naver plunged 4.28% .
The Nasdaq closed 0.97% lower overnight; Broadcom 's weak earnings forecast and Crusoe Energy 's project suspension fuelled AI valuation doubts.
Hanwha Aerospace surged 4.04% as defence stocks attracted geopolitical-risk buying.
The Korean won weakened to 1,516 per US dollar, down 3.9 won from the previous session.
South Korean stocks opened sharply lower on Wednesday, 10 June, as news of fresh United States military strikes on Iran and an overnight slide in Wall Street tech shares rattled investor sentiment. The benchmark Korea Composite Stock Price Index (KOSPI) shed 125.98 points, or 1.56 percent, to 7,970.95 in the first 15 minutes of trading, after opening as much as 2.43 percent lower.
Iran Strikes Drive Risk-Off Mood
According to foreign media reports, the US launched the strikes against Iran in response to the shooting down of an American Apache helicopter in the Strait of Hormuz. The development sharply eroded risk appetite across Asian markets, with Seoul bearing the brunt given its heavy weighting toward export-oriented tech and industrial conglomerates. This comes amid already fragile global sentiment following weeks of elevated geopolitical tension in the Middle East.
Wall Street Tech Losses Add Pressure
Overnight losses on Wall Street compounded the selloff. The tech-heavy Nasdaq Composite closed 0.97 percent lower, while the S&P 500 dropped 0.26 percent. The Dow Jones Industrial Average bucked the trend, rising 0.17 percent. Doubts over artificial intelligence (AI) valuations resurfaced after a disappointing earnings forecast from chipmaker Broadcom, which lost 1.12 percent. News that data centre developer Crusoe Energy Systems had suspended a project at the request of an unidentified major tech customer added to unease. Apple slid 3.64 percent, Micron fell 1.4 percent, and Nvidia dipped 0.2 percent.
Key Movers on the KOSPI
In Seoul, market heavyweight Samsung Electronics opened 2.8 percent lower, tracking US tech losses. Chipmaking rival SK hynix dropped 2.08 percent, while AI investment firm SK Square declined 3.31 percent and Samsung Electro-Mechanics slipped 1.62 percent. Financial stocks also took a hit, with Samsung Life Insurance sliding 5.6 percent and Samsung C&T contracting 3.61 percent. Internet portal Naver plunged 4.28 percent, and home appliances maker LG Electronics pulled back 2.22 percent.
Bright Spots: Autos, Batteries, Defence
Not all sectors were in the red. Hyundai Motor rose 0.78 percent and affiliate Hyundai Mobis jumped 2.18 percent, though sister company Kia dipped 0.55 percent. Leading battery maker LG Energy Solution gained 1.01 percent, while Samsung SDI edged down 0.58 percent. Defence conglomerate Hanwha Aerospace surged 4.04 percent, reflecting the flight-to-defence trade that typically accompanies geopolitical escalation. The Korean won was trading at 1,516 won to the US dollar as of 9:15 am local time, down 3.9 won from the previous session.
What to Watch
The trajectory of US-Iran tensions will be the primary driver in the near term. Any further escalation in the Strait of Hormuz — a critical chokepoint for global oil shipments — could amplify the selloff, particularly in energy-importing economies like South Korea. Investors will also watch for further signals on AI capital expenditure after the Crusoe Energy project suspension raised questions about the pace of data centre buildout.
Point of View
And to Wall Street AI sentiment through its dominant chip and tech exporters. The Hanwha Aerospace surge is a telling inversion — defence stocks becoming a safe haven is not a sign of stability. Notably, the Crusoe Energy project suspension, largely underreported, may be the more durable market signal: if hyperscaler AI capex is quietly being trimmed, the earnings assumptions underpinning Samsung Electronics and SK hynix valuations deserve fresh scrutiny.
NationPress
27 Jul 2026
Frequently Asked Questions
Why did the KOSPI fall sharply on 10 June?
The KOSPI dropped 125.98 points to 7,970.95 on 10 June after the United States reportedly launched military strikes on Iran following the shooting down of an American Apache helicopter in the Strait of Hormuz. Overnight losses in Wall Street tech stocks, driven by a weak Broadcom earnings forecast and AI valuation concerns, added further downward pressure.
How much did Samsung Electronics and SK hynix fall?
Samsung Electronics opened 2.8 percent lower and SK hynix dropped 2.08 percent in early Seoul trading, both tracking the overnight decline in US technology stocks.
What triggered the US strikes on Iran?
According to foreign media reports, the US struck Iran in response to the shooting down of an American Apache helicopter in the Strait of Hormuz. The strikes sharply curtailed investor risk appetite across Asian markets.
Which Seoul stocks bucked the downtrend?
Hyundai Motor rose 0.78 percent, Hyundai Mobis jumped 2.18 percent, LG Energy Solution gained 1.01 percent, and defence conglomerate Hanwha Aerospace surged 4.04 percent, benefiting from geopolitical-risk buying.
What is the significance of the Crusoe Energy project suspension?
Data centre developer Crusoe Energy Systems suspended one of its projects at the request of an unidentified major tech customer, reviving doubts about the pace of AI infrastructure investment. The development, combined with Broadcom's disappointing earnings outlook, weighed on AI-linked stocks globally and in Seoul.
