South Korean Stocks Plummet 3.6% Amid Trump's Iran Threats

Key Takeaways

South Korean stocks dropped over 3% due to geopolitical tensions.

President Trump's threatening remarks on Iran spurred market reactions.

Global oil prices increased significantly, impacting financial markets.

Major companies in Korea faced declines, including Samsung and Hyundai.

The South Korean won weakened against the U.S. dollar.

Seoul, April 2 (NationPress) – South Korean equities experienced a significant decline of more than 3 percent on Thursday morning following a stern warning from U.S. President Donald Trump regarding potential military action against Iran. The Korea Composite Stock Price Index (KOSPI) plunged by 197.1 points, equating to a 3.6 percent drop, settling at 5,281.6 by 11:20 a.m.

Initially, the index opened strong, gaining over 1 percent as it mirrored the overnight advances on Wall Street. However, it swiftly reversed course after Trump's statements extinguished hopes for a prompt resolution to the ongoing conflict, as reported by Yonhap news agency.

In a televised address earlier in the day, Trump asserted, "We are going to hit them extremely hard over the next two to three weeks," threatening to revert Iran to the Stone Age and indicating that energy installations could be targeted if a diplomatic agreement fails.

This fresh warning significantly influenced global oil prices, with Brent crude surging more than 4 percent to surpass $100 a barrel.

The conflict, which escalated in late February due to U.S.-Israeli strikes on Iran, has led to increased global oil prices as supply disruptions raise alarm about inflation and the potential for an economic slowdown, unsettling financial markets.

In Seoul, many large-cap stocks faced downward pressure. Notably, market leader Samsung Electronics dropped 5.17 percent, while semiconductor giant SK Hynix fell by 5.15 percent.

Top automotive manufacturer Hyundai Motor saw a decrease of 4.3 percent, and its affiliate Kia experienced a decline of 2.06 percent.

Leading battery producer LG Energy Solution fell by 0.37 percent, while AI investment firm SK Square dropped 5.59 percent. Nuclear power plant constructor Doosan Enerbility decreased by 4.72 percent.

Financial heavyweight KB Financial lost 1.35 percent, and major steel producer POSCO declined by 1.01 percent.

Prominent shipbuilder HD Hyundai Heavy retreated by 2.21 percent, while competitor Hanwha Ocean plunged 4.49 percent.

Biotech shares had a mixed performance; Samsung Biologics increased by 1.34 percent, whereas Celltrion fell by 3.83 percent.

Among the few gainers, defense leader Hanwha Aerospace soared by 6.3 percent, and Samsung SDI gained 2.2 percent.

The South Korean won was trading at 1,520.2 against the U.S. dollar at 11:20 a.m., reflecting a decrease of 18.9 won from the previous session.

Point of View

The South Korean stock market has reacted negatively, highlighting the interconnectedness of global financial markets and geopolitical events. Investors are advised to remain vigilant as tensions escalate.

NationPress

7 Jul 2026

Frequently Asked Questions

What caused the drop in South Korean stocks?

The decline was primarily triggered by President Trump's warning of potential military action against Iran, which raised concerns about geopolitical stability and led to increased oil prices.

How much did the KOSPI index fall?

The KOSPI index fell by 197.1 points, a decrease of 3.6%, settling at 5,281.6.

What impact did Trump's remarks have on oil prices?

Trump's warnings led to a surge in global oil prices, with Brent crude jumping over 4% to above $100 a barrel.

Which South Korean companies experienced significant losses?

Major companies like Samsung Electronics, SK Hynix, and Hyundai Motor all experienced notable declines in their stock prices.

How is the South Korean won performing?

The South Korean won was trading at 1,520.2 against the U.S. dollar, down by 18.9 won from the previous session.