South Korean shares slumped 8% on Monday to activate circuit breakers for a second time this month on an escalating Middle East conflict, while the won dropped more than 1% to trade near a key psychological barrier of 1,500 per dollar.
The benchmark KOSPI was down 452.80 points, or 8.11%, at 5,132.07 by 0148 GMT. The KOSPI lost 10.6% last week, the biggest drop since March 2020, amid heightened volatility on worries about surging oil prices and risk-off sentiment.
Circuit breakers were activated for the second time this month, after they were triggered on Wednesday for the first time since August 2024. The won was quoted at 1,497.5 per dollar on the onshore settlement platform, 1.06% lower than its previous close at 1,481.6. Last week, the currency hit the psychological threshold of 1,500 per dollar for the first time since March 2009.
The Bank of Korea said there was excessive volatility in bond and foreign exchange markets, as it pledged to take market-stabilising measures, if required.
Iran named Mojtaba Khamenei to succeed his father Ali Khamenei as supreme leader, signalling that hardliners remain firmly in charge in Tehran a week into its conflict with the United States and Israel.
Among index heavyweights, chipmaker Samsung Electronics fell 10.04%, while peer SK Hynix lost 11.58%. Battery maker LG Energy Solution slid 6.62%. Of the total 927 traded issues, only 56 shares advanced, while 869 declined.
Foreigners were net sellers of shares worth 1.8 trillion won ($1.20 billion). The most liquid three-year Korean treasury bond yield rose by 19.6 basis points to 3.426%, hitting its highest level since June 2024, while the benchmark 10-year yield rose 13.3 basis points to 3.749%.