South Korean shares set for second weekly drop on Middle East tensions

LG Energy Solution

13/03/2026 01:36

KOSPI falls, foreigners net sellers Korean won weakens against dollar South Korea benchmark bond yield rises

SEOUL, March 13 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares slumped on Friday, poised for a second consecutive weekly loss, as escalating tensions in the Middle East rattled investors and heightened risk aversion.

** The benchmark KOSPI .KS11 was down 96.76 points, or 1.73%, at 5,486.49, as of 0114 GMT, after falling more than 3% earlier in the session.

** The KOSPI index has fallen 1.7% so far this week, after dropping 10.6% last week, the biggest drop since March 2020.

** U.S. stocks ended sharply lower on Thursday, as Iranian strikes on two oil tankers sent crude prices surging toward $100 per barrel, further exacerbating inflation fears and sending investors fleeing equity markets. .N

** The war in the Middle East is creating the biggest oil supply disruption in history, the International Energy Agency said on Thursday, a day after it agreed to release a record volume from strategic stockpiles to offset shortages and a spike in prices.

** South Korea's budget ministry said on Friday the government would draft an extra budget without new bond issuance to minimise any impact on domestic markets.

** Among index heavyweights, chipmaker Samsung Electronics 005930.KS fell 2.55%, while peer SK Hynix 000660.KS lost 2.58%. Battery maker LG Energy Solution 373220.KS slid 3.91%.

** Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS were down 0.86% and 2.57%, respectively. Steelmaker POSCO Holdings 005490.KS shed 1.58%, while drugmaker Samsung BioLogics 207940.KS fell 1.78%.

** Of the total 923 traded issues, 304 shares advanced, while 575 declined.

** Foreigners were net sellers of shares worth 653.8 billion won ($439.23 million).

** The won was quoted at 1,490.3 per dollar on the onshore settlement platform KRW=KFTC, 0.12% lower than its previous close at 1,488.5.

** The most liquid three-year Korean treasury bond yield KR3YT=RR rose 5.1 basis points to 3.321%, while the benchmark 10-year yield KR10YT=RR rose 4.2 basis points to 3.690%.

($1 = 1,488.5000 won)

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

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