South Korea’s stock market slid sharply in early March 2026 as risk sentiment deteriorated alongside escalating Middle East conflict concerns. South Korea saw the KOSPI fall 452.22 points (7.24%) to close at 5,791.91 on March 3, 2026, a move described as the biggest-ever daily drop and the lowest close since Feb. 20, 2026 (5,808.53).
In South Korea, volatility triggered market-stabilization actions. Around noon on March 3, the Korea Exchange issued a sell-side sidecar for five minutes, suspending the selling of KOSPI futures. Trading volume was reported at 1.2 billion shares worth 52.5 trillion won (US$35.8 billion), with decliners outnumbering advancers 840 to 73.
Flows highlighted a split in positioning across South Korea’s investor base. Foreign investors and institutions were reported as net sellers (5.1 trillion won and 891.1 billion won), while retail investors recorded net buying of 5.8 trillion won. Large-cap declines included Samsung Electronics (-9.88%), SK hynix (-11.5%) and Hyundai Motor (-11.72%).
On March 4, the selloff deepened in South Korea, with the KOSPI reported down 10.78% to 5,167 in the morning before a circuit breaker halted trading for 20 minutes. The second-day drop was linked to margin calls among leveraged investors, adding mechanical selling pressure to the broader macro shock.
