South Korean shares drop 8%, trigger circuit breakers as won nears 1,500 per dollar

LG Energy Solution

09/03/2026 02:17

Risk-off sentiment heightens as Middle East war rages

Korean won weakens 1% against dollar

South Korea benchmark bond yield rises

SEOUL, March 9 (Reuters) - Round-up of South Korean financial markets:

** 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 .KS11 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 KRW=KFTC, 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 005930.KS fell 10.04%, while peer SK Hynix 000660.KS lost 11.58%. Battery maker LG Energy Solution 373220.KS 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 KR3YT=RR rose by 19.6 basis points to 3.426%, hitting its highest level since June 2024, while the benchmark 10-year yield KR10YT=RR rose 13.3 basis points to 3.749%.

($1 = 1,497.0100 won)

 (Reporting by Jihoon Lee; Editing by Sherry Jacob-Phillips)

 ((jihoon.lee@thomsonreuters.com;))