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Kospi slips over 3 percent amid uncertain U.S.-Iran discussions

Published: 26 Mar. 2026, 18:51

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 5,460.46 points on March 26, down 181.75 points, or 3.22 percent, from the previous trading session. [YONHAP]

Shares plunged by more than 3 percent on Thursday as investors closely watched the developments in peace talks between the United States and Iran. The Korean won fell against the U.S. dollar.

The Kospi fell 181.75 points, or 3.22 percent, to 5,460.46.

Trade volume was moderate at 902.9 million shares worth 24.1 trillion won ($15.9 billion). Losers outnumbered winners 662 to 226.

Foreigners continued their selling binge by offloading a net 3.1 trillion won, while institutional investors sold off a net 338.7 billion won. Individual investors purchased a net 3.06 trillion won.

"Uncertainties over the Middle East situation and the semiconductor market weighed on the overall market," said Lee Kyoung-min, an analyst from Daishin Securities.

On Wednesday, the United States and Iran diverged on talks over their monthlong war. The White House claimed talks with Tehran are proceeding apace, while a top Iranian official said there were exchanges of "messages" but questioned negotiations.

Semiconductors also came under selling pressure after Google's new artificial intelligence compression algorithm, TurboQuant, fueled concerns that demand for memory chips may decrease in the near future.

Most large caps closed lower, with semiconductors leading the market decline. Chip giant Samsung Electronics retreated 4.71 percent to 180,100 won, while its rival SK hynix dipped 6.23 percent to 933,000 won.

In contrast, major chemical company Lotte Chemical rose 0.88 percent to 80,500 won after Iran's top envoy to Korea said it is a non-adversarial country, and its vessels could pass through the Strait of Hormuz under prior coordination with Tehran.

KB Financial added 1.87 percent to 152,200 won, while Shinhan Holdings, another major financial group, moved up 1.41 percent to 93,400 won.

The local currency depreciated 7.3 won from the previous session to trade at 1,507 won against the greenback at 3:30 p.m.

Bond prices, which move inversely to yields, closed mixed. The yield on three-year Treasurys inched down 0.6 basis point to 3.552 percent, and the return on the benchmark five-year government bonds rose 1.5 basis points to 3.801 percent.

Yonhap