South Korean stocks tumbled nearly 6% on March 9 amid U.S.-Israeli strikes on Iran driving oil past $100 per barrel. The won hit a 17-year low of 1,495.5 per dollar as circuit breakers activated. President Lee Jae-myung ordered a fuel price cap to curb soaring petroleum costs.
South Korean stocks plunged nearly 6% on March 9, battered by escalating Middle East tensions from U.S.-Israeli airstrikes on Iran starting February 28 and a spike in global oil prices above $100 per barrel. The Korea Composite Stock Price Index (KOSPI) shed 333 points, or 5.96%, to close at 5,251.87, while the Kosdaq dropped 4.54% to 1,102.28. Trading volume was heavy at 1 billion shares worth 33 trillion won ($22 billion), with decliners outnumbering gainers 847 to 73. The Korea Exchange (KRX) triggered circuit breakers twice—halting trading for 20 minutes after an 8% drop—and a sell-side sidecar, suspending sell orders for five minutes. This followed a 12.06% drop last week.
Individual investors net bought 4.62 trillion won ($3.1 billion), countering net sales of 3.1-3.18 trillion won by foreigners and 1.53 trillion won by institutions. Major stocks tumbled: Samsung Electronics fell 7.81% to 173,500 won, SK hynix 9.52% to 836,000 won, SK Innovation 5.36% to 118,200 won, S-Oil 0.77% to 128,700 won, and LG Energy Solution 4.77% to 359,500 won. POSCO International bucked the trend, rising 4.5% to 76,600 won.
The Korean won traded at 1,495.5 against the dollar by 3:30 p.m., down 19.1 won—the weakest since March 12, 2009. Analysts like Han Ji-young of Kiwoom Securities warned of further drops below 5,000 if panic persists, while Lee Kyoung-min of Daishin Securities noted the psychological $100 oil barrier.
Gasoline prices in Seoul exceeded 1,949 won ($1.3) per liter by Monday noon, up 11% from February 27, with Dubai crude at $100.42 and Brent over $100. In response, President Lee Jae-myung directed swift implementation of a fuel price cap at an interministerial meeting—the first since 1997 under the Petroleum Business Act. Policy chief Kim Yong-beom said steps would follow this week to prevent abnormal pricing. The government holds 190 million barrels in reserves, plans UAE imports of over 6 million barrels, and is reviewing fuel tax cuts, subsidies, and expansion of the 100 trillion-won market stabilization fund. Prolonged conflict risks undermining growth forecasts.
