[Edaily Reporter Shin Ha-yeon ] The KOSPI closed sharply lower amid soaring international oil prices caused by escalating military tensions between the U.S. and Iran, as well as rising U.S. Treasury yields. In addition to the sharp decline in U.S. stock markets, the Trump administration’s announcement of “forced labor tariffs” further dampened investor sentiment, leading to continued selling by foreign and institutional investors.

According to MP Doctor on the 24th, the KOSPI closed at 6,690.62, down 406.27 points (5.72%) from the previous trading day. The index opened at 7,000.78, down 1.35% from the previous session, and extended its losses during the session, briefly falling as low as 6,650.41.

At 11:23 a.m. that day, the Korea Exchange triggered the 41st “sidecar” of the year (20 buy triggers, 21 sell triggers) on the Stock Market. As the KOSPI 200 near-month futures contract remained down more than 5.04% from the reference price for over one minute, the effectiveness of sell orders in program trading was suspended for five minutes.

By investor type, foreign investors and institutions recorded net sales of 3.2829 trillion won and 1.9514 trillion won, respectively. Retail investors were the sole net buyers, purchasing 5.1783 trillion won, but this was insufficient to stem the index’s decline. Program trading, combining arbitrage and non-arbitrage trades, recorded a net selling volume of 4.01 trillion won.

Overnight, U.S. stock markets fell across the board. The Dow Jones Industrial Average fell 0.97%, the S&P 500 index dropped 1.21%, and the Nasdaq Composite Index declined 2.15%. Investor sentiment deteriorated as Alphabet and Tesla plummeted on profitability concerns following their earnings reports, compounded by ongoing military clashes between the U.S. and Iran.

International oil prices also surged amid escalating tensions in the Middle East. Brent crude surpassed $100 per barrel, and WTI also rose above $90, fueling inflation concerns. Consequently, the yield on the 10-year U.S. Treasury note broke through 4.7%, increasing valuation pressures on growth stocks.

Furthermore, the Trump administration’s announcement of “forced labor tariffs” ranging from 10% to 12.5% on 60 countries under Section 301 of the Trade Act served as another factor dampening investor sentiment toward risky assets. However, the securities industry believes the actual impact on the domestic stock market will be limited, as this measure is intended to replace existing provisional tariffs.

By sector, the electrical and electronics sector fell by around 7%, while manufacturing, large-cap stocks, and healthcare and precision instruments closed down by around 6%. Most sectors, including transportation equipment and parts, securities, IT services, machinery and equipment, construction, retail, finance, chemicals, insurance, non-metals, textiles and apparel, electricity and gas, and real estate, posted declines.

Among the top market-cap stocks, SamsungElectronics closed at 249,500 won, down 20,500 won (7.59%) from the previous trading day, while SK hynix(000660)closed at 1,759,000 won, down 160,000 won (8.34%). In addition, SKSQUARE(402340)(-9.17%), SamsungElectroMechanics(009150)(-8.43%), LG Energy Solution(373220)(-5.32%), Samsung Life Insurance(032830)(-3.49%), KB Financial Group(105560)(-2.72%), and SAMSUNG C&T CORPORATION(028260)(-5.0%) all closed lower.

The KOSDAQ index closed at 748.22, down 42.06 points (5.32%) from the previous trading day. On the KOSDAQ market as well, the 11th sell-side circuit breaker of the year was triggered at 11:47 a.m. Foreign investors and institutions recorded net sales of 133.5 billion won and 358.8 billion won, respectively, while retail investors recorded net purchases of 488.8 billion won.

However, the securities industry maintains its outlook on the AI investment cycle and the semiconductor sector despite increased short-term volatility.

Han Ji-young, an analyst at KIWOOM Securities, noted, “We are currently in a phase where rising interest rates triggered by surging oil prices could create valuation pressures,” but added, “The KOSPI’s forward price-to-earnings ratio (P/E) is currently around 6 times, which is lower than during past periods of sharp interest rate hikes. Given that we have entered the full-fledged second-quarter earnings season, it is appropriate to maintain the existing weighting in semiconductor stocks.”

Lee Kyung-min, an analyst at DaishinSecurities, also noted, “While short-term volatility may persist due to the conflict between the U.S. and Iran, surging oil prices, and tariff issues, the earnings momentum of the domestic stock market remains valid,” adding, “Domestic and international events may serve as short-term noise and present opportunities to increase exposure.”