South Korean Stocks Suffer Worst Sell-off Since 2024

South Korean stocks slumped as Middle East tensions stoked concern over the impact of rising energy costs, with global funds offloading more than $3 billion of local equities amid a wave of risk-off sentiment, Bloomberg News reported.

The recent drop shaved around $170 billion in combined market capitalization from the duo, unnerving investors who had jumped into the rally, betting the gains would extend. (Photo: Yonhap News Agency)

The benchmark Kospi sank 7.2% in its worst session since August 2024 as the market reopened after a holiday.

Chip heavyweights Samsung Electronics Co. and SK Hynix Inc. dragged the gauge lower, dropping at least 9.9% each, Karen Friar also reported for Yahoo Finance. A prolonged war could be a major test of the world-beating rally in Korean equities, with the Kospi still up 37% this year.

Samsung and SK Hynix powered much of the gains on the back of surging global memory demand amid the artificial intelligence boom.

Tuesday’s drop shaved around $170 billion in combined market capitalization from the duo, unnerving investors who had jumped into the rally, betting the gains would extend.