South Korean shares retreat from record highs as Middle East unrest intensifies

Samsung Electronics Co

04/06/2026 02:50

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

    SEOUL, June 4 (Reuters) - Round-up of South Korean financial markets:

** South Korean shares fell on Thursday, retreating from record highs, as risk appetite weakened on concerns over a worsening conflict in the Middle East. 
** The benchmark KOSPI .KS11 was down 137.35 points, or 1.56%, at 8,664.14, as of 0102 GMT, after falling as much as 2.5% earlier in the session. 
** The market was closed on Wednesday for a public holiday after the index notched a record close on Tuesday. 
** Iranian Foreign Minister Abbas Araqchi said on Wednesday Tehran's contacts with Washington have not been cut off, but no progress has been made in the negotiations, adding both sides were studying the texts that were exchanged.
** On the other hand, Israel and Lebanon agreed to implement a ceasefire to end hostilities, the Trump administration said, boosting hopes for a broader deal to end the U.S.-Israeli war on Iran.    
** South Korea's finance minister said authorities would closely monitor risks around domestic stock, bond and foreign exchange markets and take measures to curb excessive volatility.    
** Among index heavyweights, chipmaker Samsung Electronics 005930.KS fell 0.28% on Thursday, while peer SK Hynix 000660.KS lost 2.88%. Battery maker LG Energy Solution 373220.KS slid 4.75%.
** Shares of Hyundai Motor 005380.KS and sister automaker Kia Corp 000270.KS were down 3.16% and 3.02%, respectively. Steelmaker POSCO Holdings 005490.KS was flat, while drugmaker Samsung BioLogics 207940.KS edged 0.07% higher.
** Of the total 923 traded issues, 377 shares advanced, while 516 declined.
** Foreigners were net sellers of shares worth 2.5 trillion won ($1.64 billion). 
** The won was quoted at 1,528.4 per dollar on the onshore settlement platform KRW=KFTC, 0.62% lower than its previous close at 1,519.0.
** In money and debt markets, June futures on three-year treasury bonds KTBc1 lost 0.17 point to 103.05.
** The most liquid 3-year Korean treasury bond yield KR3YT=RR rose 5.8 basis points to 3.832%, while the benchmark 10-year yield KR10YT=RR rose 5.9 basis points to 4.184%.

($1 = 1,526.5000 won)

 (Reporting by Jihoon Lee; Editing by Sherry Jacob-Phillips)
 ((jihoon.lee@thomsonreuters.com;))