South Korea's stock market opened down more than 5% in pre-market trading on the 4th, as anxiety persists following U.S. airstrikes on Iran. The KOSPI, which plummeted 7.24% the previous day, is struggling to rebound amid overnight declines across U.S. markets and the won-dollar exchange rate briefly spiking to 1,500 won.
![U.S. commitment to 'Hormuz protection' fails to prevent KOSPI pre-market plunging 5% at open [U.S.-Iran War] - Seoul Economic Daily Finance News from South Korea](/_next/image?url=https%3A%2F%2Fwimg.sedaily.com%2Fnews%2Fcms%2F2026%2F03%2F04%2Fnews-p.v1.20260304.c21adb5df4604a91ad98fcad84d0c393_P1.jpg&w=3840&q=75 "KOSPI Plunges 5% in Pre-Market Despite U.S. Hormuz Protection Pledge")
According to NextTrade, the KOSPI index was down 5.74% at 8:15 a.m. in pre-market trading. The decline widened to 5.5% around 8:02 a.m. early in the session.
Among top market-cap stocks, Samsung Electronics (-6.51%), SK Hynix (-6.18%), Hyundai Motor (-7.23%), LG Energy Solution (-6.36%), Samsung Biologics (-4.1%), and SK Square (-7.57%) are among many shares falling sharply. However, Hanwha Aerospace (+12.01%), S-Oil (+18.11%), LIG Nex1 (+15.58%), and IntoCell (+10.23%) are surging.
Overnight, New York markets opened sharply lower but pared losses after President Donald Trump's message pledging to protect the Strait of Hormuz. "Under any circumstances, the United States will ensure the free flow of energy to the world," Trump said, adding that the U.S. Navy would escort tankers through the Strait of Hormuz if necessary.
The Dow Jones Industrial Average closed at 48,501.27, down 403.51 points (0.83%) from the previous session. The S&P 500 finished at 6,816.63, down 64.99 points (0.94%), while the tech-heavy Nasdaq Composite closed at 22,516.691, down 232.17 points (1.02%).
Experts suggest the domestic market will find it difficult to avoid correction for the time being, given the rapid pace of the recent rally. Lee Kyung-min, a researcher at Daishin Securities, said, "Due to intensifying short-term overheating, accumulated fatigue, and differences in market-cap weightings, even if rotation into domestic-focused stocks occurs, KOSPI is expected to enter a phase of short-term cooling and supply absorption." He added, "We expect policy and earnings momentum to strengthen again after mid-March, leading to a more solid market. Volatility in early March presents an opportunity to increase positions in leading stocks."