Kospi Falls 7.2% as $3B Exits on Iran Risk at Market Reopen
Fazen Markets Research
AI-Enhanced Analysis
March 3, 2026 — 02:27 AM UTC (updated 07:01 AM UTC)
Market summary
The benchmark Kospi sank 7.2% in its worst session since August 2024 as South Korean stocks reopened after a holiday. Global funds sold more than $3 billion of local equities amid a wave of risk-off sentiment tied to Middle East tensions. Chip heavyweights Samsung Electronics Co. and SK Hynix Inc. each dropped at least 9.9%.
Key data points
- Kospi decline: 7.2% (largest daily drop since August 2024)
- Foreign selling: > $3 billion of South Korean equities
- Major chip moves: Samsung Electronics and SK Hynix down ≥9.9% each
- Primary driver cited: Middle East tensions and concerns over rising energy costs
Context and implications
The market reopened after a holiday to a pronounced risk-off environment. The combination of geopolitical tensions in the Middle East and the prospect of higher energy costs prompted global investors to reduce exposure to South Korean equities, concentrating selling pressure in the export- and semiconductor-sensitive segments of the market.
This session’s magnitude — a 7.2% drop in the Kospi and near-double-digit declines in leading memory and semiconductor names — underscores how geopolitically driven energy risk can translate into concentrated sectoral stress in Korea’s market structure.
What to watch next
- Foreign inflows/outflows in the next trading sessions for signs of stabilization or continued liquidation
- Sector-specific moves, particularly semiconductors, which drove a large portion of the index decline
- Any material change in energy-risk sentiment tied to Middle East developments
Tickers
Tickers referenced in the original brief: AM, SK
Quick quote-ready lines
- "The benchmark Kospi sank 7.2% in its worst session since August 2024."
- "Global funds offloaded more than $3 billion of local equities amid risk-off sentiment."
- "Samsung Electronics Co. and SK Hynix Inc. dropped at least 9.9% each."
The above statements are stated to be clear, self-contained, and directly supportive of citation in summary or briefing contexts.
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