Korean stock market crashes 12% triggers circuit... Updated: 1hr ago

KOSPI crashes 12.06% to 5,093.54 on March 4, 2026, marking the worst single-day drop since 2008.

KOSDAQ plunges 14.00% to 978.44, triggering circuit breakers on both exchanges after an 8% decline.

Major tech giants Samsung Electronics and SK Hynix fall 11.69% and 9.16% respectively amid broad sell-off.

Market Status

KOSPI breaks below the critical 5,000 psychological support, currently testing the 4,950-5,000 zone for potential stabilization.

• Trading halted for 20 minutes after an 8% drop triggered Phase 1 circuit breaker, with Phase 2 at 15% remaining a critical threshold.

The Korean won depreciates sharply, amplifying foreign outflows and imported inflation pressures across the economy.

• Foreign investors act as net sellers while retail investors attempt to buy dips, creating a volatile market dynamic.

Driving Factors

Escalating Middle East conflict, specifically Iran-U.S. tensions, drives global risk aversion and surging oil prices.

Strait of Hormuz shipping disruptions threaten South Korea's energy security given its 94% oil import reliance.

Global contagion effects from Wall Street declines and Asian market weakness create a synchronized sell-off environment.

• Forced liquidations of leveraged positions exacerbate the decline following a 75% KOSPI rally in 2025.

• Record net equity sales by overseas investors in February precede the crash as profit-taking accelerates the downturn.