Economy

KOSPI Plummets: How Trump’s Iran Strike Threats Impact South Korea’s Stock Market

Won Yeong Song

April 6, 2026

On Thursday morning, a live broadcast of Donald Trump’s address to the nation regarding the Middle East crisis is being shown alongside the KOSPI index at the Hana Bank trading room in Jung-gu, Seoul 2026.4.2 / News1

On Thursday morning, a broadcast of U.S. President Trump’s address to the nation regarding the war in the Middle East was displayed on the electronic board in the Hana Bank dealing room in Jung-gu, Seoul. On that day, the KOSPI fell 9.12% (0.17%) from the previous trading day to close at 5,469.58 2026.4.2 / News1

On Thursday, market conditions, including the KOSPI and KOSDAQ, were displayed on the electronic board in the Hana Bank dealing room in Jung-gu, Seoul. On that day, the KOSPI opened at 5,551.69, up 72.99 points (1.33%) from the previous trading day (5,478.7) 2026.4.2 / News1

On Thursday morning, citizens watch a live TV broadcast of U.S. President Donald Trump’s address to the nation regarding the situation in the Iran conflict in the waiting area of Seoul Station in Yongsan-gu, Seoul 2026.4.2 / News1

On Thursday morning, market conditions such as the KOSPI and KOSDAQ were displayed on the electronic board in the Hana Bank dealing room in Jung-gu, Seoul 2026.4.2 / News1

The KOSPI initially rallied on optimism surrounding a potential end to the Iran conflict. However, the index later reversed course and displayed mixed performance following the emergence of key variables.

U.S. President Donald Trump’s speech on Thursday, which hinted at extensive airstrikes against Iran, triggered a downturn in the domestic stock market.

After a strong start, the KOSPI retreated during trading, falling to the 5,300 level.

As of 10:58 a.m. (South Korean time), the KOSPI stood at 5,342.25, down 136.45 points (2.49%) from the previous session.

Around the same time, the KOSDAQ index also declined, dropping 30.39 points (2.72%) to 1,085.79 compared to the last trading day.

Following the opening of the South Korean market, President Trump’s hawkish statement that the U.S. would hit Iran extremely hard over the next 2 to 3 weeks led to the index’s downward shift.

Meanwhile, in the Seoul foreign exchange market, the KRW-USD exchange rate opened at 1,512.2 KRW (about 1 USD), up 10.9 KRW (about 0.0072 USD) from the previous trading day, indicating an upward trend.

Market analysts suggest that the geopolitical tensions in the Middle East and global risk factors are contributing to increased short-term volatility in the financial markets.