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When the Tide Recedes in a Day: What Sparked Korea’s Record Market Plunge
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When the Tide Recedes in a Day: What Sparked Korea’s Record Market Plunge

South Korea’s benchmark KOSPI index plunged more than 12% in its largest single-day percentage drop on record, as escalating Middle East tensions drove oil prices higher and triggered global risk aversion. Major companies including Samsung Electronics, SK Hynix, and Hyundai Motor posted steep losses, while foreign investors led heavy selling. Circuit breakers briefly halted trading amid extreme volatility. The sell-off underscores South Korea’s sensitivity to energy shocks and global capital flows, raising questions about whether the plunge reflects short-term panic or deeper economic risks.

5 min read