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Kospi opens sharply lower on escalating Middle East crisis, U.S. rate freeze

Published: 19 Mar. 2026, 09:58

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on March 19. [NEWS1]

Shares kicked off sharply lower Thursday after the Middle East's critical energy facilities were attacked during the United States and Israel-led war against Iran, and the U.S. Federal Reserve's decision to keep its interest rates unchanged.

The Kospi dropped 128.08 points, or 2.16 percent, to 5,796.95 in the first 15 minutes of trading.

Overnight, the Dow Jones Industrial Average dipped 1.63 percent, while the tech-heavy Nasdaq Composite slid 1.46 percent, and the S&P 500 pulled back 1.36 percent.

Investors' risk appetite was sapped as Israel attacked Iran's largest South Pars gas field, and Iran hit back with a strike on a major liquefied natural gas site in Qatar, driving up global oil prices again.

The Fed's decision to maintain its policy rate in the 3.5-3.75 percent range also dragged down market sentiment.

In Seoul, most top-cap shares started in the negative territory.

Market top-cap Samsung Electronics lost 2.64 percent, and its chipmaking rival SK hynix slipped 2.84 percent.

Auto giant Hyundai Motor shed 3.12 percent, and its sister Kia went down 1.71 percent.

AI investment firm SK Square dipped 2.22 percent, and leading battery maker LG Energy Solution decreased 1.96 percent.

Major defense firm Hanwha Aerospace dropped 1.33 percent, and leading shipbuilder HD Hyundai Heavy contracted 2.37 percent.

Bio firm Celltrion tumbled 3.1 percent.

The won weakened by 17.3 won from the previous session to trade at 1,500.4 won against the dollar at 9:15 a.m.

Yonhap