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Seoul shares snap seven-day rise on Middle East tensions; won sharply down

Published: 13 Jun. 2025, 17:53

An electronic board at Hana Bank’s headquarters in Jung District, central Seoul, shows the Kospi and won-dollar exchange rate on June 13. [YONHAP]

Korean stocks snapped their seven-day winning streak Friday as rising tensions in the Middle East heightened investors' risk-off sentiment. The local currency was trading sharply lower against the dollar.

The Kospi lost 25.41 points, or 0.87 percent, to close at 2,894.62.

The Kospi had gained ground for the seventh consecutive session until Thursday, surpassing the 2,900-point mark for the first time in more than three years.

Trade volume was heavy at 921 million shares worth 17.2 trillion won ($12.6 billion), with losers far outnumbering winners 763 to 149.

Institutions dumped 610.9 billion won worth of local shares, offsetting foreign and retail investors' respective purchase of 121.2 billion won and 466.9 billion won.

Overnight, Wall Street closed higher on reduced inflationary pressure and stable interest rates. The Dow Jones Industrial Average gained 0.24 percent, the tech-heavy Nasdaq composite rose 0.24 percent and the S&P 500 climbed 0.38 percent.

However, Israel conducted a pre-emptive strike on Iran, sapping investor sentiment. Israeli officials said the country has carried out waves of airstrikes against nuclear and military facilities in Tehran.

An electronic board at Hana Bank’s headquarters in Jung District, central Seoul, shows the Kosdaq on June 13. [YONHAP]

The Donald Trump administration's plan to add imported household appliances, such as dishwashers, washing machines and refrigerators, to the list of imports subject to 50 percent steel tariffs also hurt investors' risk appetite.

The expanded steel tariff plan will take effect on June 23, affecting major Korean companies, like Samsung Electronics and LG Electronics.

In Seoul, Samsung Electronics dipped 2.02 percent to 58,300 won, and LG Electronics sank 3.99 percent to 72,200 won.

Top automaker Hyundai Motor and its sister Kia went down 1.24 percent and 1.22 percent, to 199,000 won and 97,200 won, respectively.

Leading battery maker LG Energy Solution also slid 2.63 percent to 296,000 won.

Bio shares also closed weak, with Samsung Biologics down 0.97 percent to 1.01 million won and Celltrion down 1.89 percent to 160,800 won.

On the other hand, defense companies benefited from the Middle East crisis.

Poongsan surged 22.15 percent to a record high of 107,000 won, and LIG Nex1 soared 14.35 percent to 526,000 won. Hyundai Rotem also increased 3.95 percent to 186,800 won.

Major shipbuilder HD Korea Shipbuilding & Offshore Engineering rose 2.94 percent to 350,500 won, and leading shipper HMM jumped 5.22 percent to 24,200 won.

The local currency was trading at 1,369.6 won against the greenback at 3:30 p.m., down 10.9 won from the previous session.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys grew 3.3 basis points to 2.462 percent, and the return on the benchmark five-year government bonds rose 1.6 basis points to 2.597 percent.

Yonhap