South Korean shares fall 2% as Middle East war overshadows upbeat data

LG Energy Solution

03/03/2026 02:19

KOSPI falls, foreigners net sellers

Korean won weakens against dollar

South Korea benchmark bond yield rises

SEOUL, March 3 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares fell 2% on Tuesday, as the widening Middle East war dampened risk appetite, overshadowing upbeat domestic data.

** The won weakened, while the benchmark bond yield rose.

** The benchmark KOSPI .KS11 was down 127.09 points, or 2.04%, at 6,117.04 as of 0143 GMT.

** The market was closed on Monday for a public holiday.

** The U.S. and Israeli air war against Iran widened on Monday, with no end in sight as Israel attacked Lebanon in response to strikes by Hezbollah and Tehran kept up its attacks on Gulf states that host U.S. military bases.

** South Korea's finance ministry and central bank said on Tuesday that authorities were closely monitoring financial markets and vowed to take stabilising measures if needed.

** South Korea's factory activity expanded for a third straight month in February on a jump in output driven by strong chip demand, a survey showed.

** South Korea's exports extended their growth streak to a ninth month last month, beating market expectations, data showed.

** Among index heavyweights, chipmaker Samsung Electronics 005930.KS fell 3.12%, while peer SK Hynix 000660.KS lost 3.20%. Battery maker LG Energy Solution 373220.KS slid 2.69%.

** Hyundai Motor 005380.KS fell 5.04%, while steelmaker POSCO Holdings 005490.KS shed 3.27%. Drugmaker Samsung BioLogics 207940.KS fell 2.76%.

** Oil refiners rallied on higher energy prices, with S-Oil 010950.KS gaining 18%, while shipper HMM 011220.KS rose 13% on a surge in shipping prices. Defence stocks, such as Hanwha Aerospace 012450.KS, also jumped sharply.

** Korean Air Lines 003490.KS dropped 9% after it suspended flights to Dubai.

** Foreigners were net sellers of shares worth 2.5 trillion won ($1.71 billion).

** The won was quoted at 1,462.3 per dollar on the onshore settlement platform KRW=KFTC, 1.52% lower than its previous close at 1,440.0.

** The most liquid three-year Korean treasury bond yield KR3YT=RR rose by 7.1 basis points to 3.117%, while the benchmark 10-year yield KR10YT=RR rose by 6.6 basis points to 3.513%.

($1 = 1,463.7000 won)

(Reporting by Jihoon Lee; Editing by Rashmi Aich)

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