The KOSPI index plunged more than 12% on 4 March 2026. It opened the Asian session on 3 March, 2026, at 6,165.15 and closed sharply lower at 5,090.79 on 4 March, 2026. The two-day drop exceeded 18% and marked the sharpest fall in the index’s history, Bloomberg reports.

The slump was triggered by Iran’s closure of the Strait of Hormuz and the following spike in oil prices. South Korea is the world’s eighth‑largest oil consumer and a major buyer of petroleum products transiting the strait. Forced liquidations on margin accelerated the losses: the KOSPI and KOSDAQ trading was halted twice for 20 minutes after circuit breakers were triggered at an 8% plunge.

Over two days, the market wiped out $625 billion of market capitalization, mostly due to collapses in Samsung Electronics, SK Hynix, and Hyundai Motor. “The moves are too extreme, forecasting is almost impossible — analysis doesn’t help,” An Hyeon‑jin, CEO of Billionfold Asset Management, commented on the market situation.