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Kospi falls 0.86% on escalating Hormuz tensions after U.S.-Iran talks fail

Published: 13 Apr. 2026, 18:27

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 5,808.62, down 50.25 points, or 0.86 percent, from the previous trading session on April 13. [YONHAP]

Shares closed lower Monday following the escalating tensions surrounding the Strait of Hormuz after the United States announced a blockade following failed peace talks with Iran. The won fell against the dollar.

The Kospi lost 50.25 points, or 0.86 percent, to close at 5,808.62.

Trading volume was heavy at 1.07 trillion shares worth 21.1 trillion won ($14.2 billion), with losers outnumbering gainers 524 to 343.

The index opened sharply lower but narrowed losses after retail investors went bargain-hunting.

Foreigners and institutions sold a net 456.4 billion won and 702.3 billion won worth of local stocks, respectively, offsetting a net purchase of 750.7 billion won by individuals.

U.S. President Donald Trump said on social media that the United States would block ships from Iranian ports after Washington and Tehran failed to reach an agreement during peace talks in Pakistan over the weekend. The U.S. military said the blockade would begin at 10 a.m. Monday.

“Trump's announcement stirred concerns over a possible blockade of the Strait of Hormuz and rising oil prices, weighing on investor sentiment," Daishin Securities researcher Kyoung-min said.

“Foreign investors turned net sellers for the first time in five sessions, while individuals expanded their net purchase to support the index," he added.

Most shares ended in negative territory.

Samsung Electronics fell 2.43 percent to 201,000 won, and Hyundai Motor lost 2.25 percent to 478,500 won.

LG Energy Solution dropped 2.55 percent to 401,500 won, and Samsung Biologics retreated 1.34 percent to 1.55 million won.

HD Hyundai Heavy Industries declined 2.53 percent to 463,000 won, while Korean Air fell 3.04 percent to 23,950 won.

Defense firms closed higher, with Hanwha Aerospace rising 1.53 percent to 1.53 million won and LIG Nex1 gaining 1.95 percent to 939,000 won.

Food and cosmetics shares also closed strong, with Samyang Foods climbing 4.2 percent to 1.29 million won, while Cosmax jumped 6.64 percent to 199,100 won.

The won weakened by 6.8 won from the previous session to trade at 1,489.3 won against the dollar, as of 3:30 p.m.

Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys added 2.2 basis points to 3.382 percent, and the return on the benchmark five-year government bonds increased 4.3 basis points to 3.554 percent.

Yonhap