13.07.202601:40:13UTC+00South Korean Shares Fall on Middle East Tensions

The benchmark KOSPI dropped more than 3% to around 7,220 on Monday, erasing gains from the previous session as renewed US–Iran military strikes and a sharp rise in oil prices undermined global risk sentiment. Tehran’s claim that it had closed the Strait of Hormuz intensified concerns over potential disruptions to oil shipments.

The selloff was led by technology stocks. SK Hynix (-8.1%) slumped as investors took profits following its Nasdaq debut on Friday, with analysts pointing to fading optimism over near-term earnings and slower-than-expected growth in HBM4 shipments. Samsung Electronics (-3.7%), SK Square (-10.2%), Samsung Electro-Mechanics (-11.4%), and HD Hyundai Heavy Industries (-1.9%) also retreated.

Broader sentiment toward South Korea’s semiconductor sector remained fragile after the KOSPI lost nearly 8% last week. Still, the Bank of Korea reiterated that the AI-driven chip supercycle remains intact, citing persistent supply constraints and strong global demand for advanced memory chips.