Korea Stocks Black Tuesday. SK Hynix, Samsung Plummet 10% US-Iran Conflict Escalates Korea Stocks Post Biggest Daily Drop in 19 Months

TradingKey - On Tuesday, March 3, South Korean chipmakers SK Hynix and Samsung Electronics closed down 11.5% and 9.88% respectively, exerting downward pressure on Korean equities.

The KOSPI index closed down 7.24% at 5,791.91 points, hitting its lowest closing level in nearly two weeks, while its single-day drop set a 19-month record, leading the market to dub it "Black Tuesday." Due to the rapid decline, a "sidecar" mechanism was triggered intraday to suspend program trading.

By the close of the Korean market, Korean Air fell more than 10%, Hanmi Semiconductor plummeted nearly 13%, and both Kia and Hyundai Motor dropped more than 11%.

According to South Korean media reports, foreign investors sold over 3 trillion won worth of Korean stocks in the morning session, with total net selling exceeding 10 trillion won over the last two trading days.

Analysts believe this could deal a blow to the Korean market's year-to-date rally, which has outperformed global peers. The KOSPI index is still up 34% this year, with chip giants Samsung Electronics and SK Hynix accounting for the majority of those gains.

South Korea's Ministry of Economy and Finance, the central bank, and regulatory authorities continue to issue warnings, stating they are closely monitoring financial markets and pledging to implement stabilization measures if necessary.