South Korean stocks opened sharply lower on Monday after US-Iran peace talks in Pakistan ended without agreement over the weekend. President Donald Trump announced a US Navy blockade of the Strait of Hormuz, endangering a two-week ceasefire. The KOSPI benchmark fell 2.08 percent to 5,737.28 at open.
The benchmark Korea Composite Stock Price Index (KOSPI) opened at 5,737.28, down 121.59 points or 2.08 percent. Losses narrowed in the first 15 minutes, falling 89.15 points or 1.52 percent to 5,769.72.
The United States and Iran held face-to-face negotiations in Pakistan over the weekend, but the talks ended without agreement. President Trump said on social media that the US Navy would blockade the Strait of Hormuz, with the US military stating the measure takes effect at 10 a.m. Monday US time. The two countries had announced a two-week ceasefire on April 7, which is now at risk.
Most big-cap shares lost ground amid heavy selling by foreign investors. Samsung Electronics slid 2.91 percent, SK hynix declined 1.36 percent, Hyundai Motor dropped 2.15 percent, Kia lost 1.21 percent, LG Energy Solution decreased 0.61 percent, and KB Financial Group retreated 0.69 percent.
Defense shares bucked the trend, with Hanwha Aerospace adding 0.46 percent and LIG Nex1 rising 1.63 percent. The won traded at 1,487.8 against the dollar at 9:15 a.m., down 5.7 won from the previous close.
