The benchmark KOSPI fell 2.97 percent to close at 5,277.30, after plunging as much as 5.3 percent in early trading. The index pared some losses toward the close as retail and institutional buying emerged, but remained under pressure throughout the session.
Foreign investors dumped 2.13 trillion won ($1.40 billion) worth of shares, exerting strong downward pressure. Retail and institutional investors bought 894.4 billion won and 881.5 billion won, respectively, cushioning the decline.
Most large-cap stocks ended lower.
Samsung Electronics fell 1.9 percent to 176,300 won, while Hyundai Motor dropped 5.2 percent and Kia declined 2.8 percent. Doosan Enerbility fell 4 percent, while Samsung Biologics slid 4.7 percent and Hanwha Aerospace lost 2 percent.
Selective buying emerged in a handful of names backed by clear catalysts, even as the broader market remained under pressure.
Samchundang Pharm jumped 6.6 percent after announcing a U.S. licensing deal for generic versions of oral diabetes and obesity treatments, providing a rare stock-specific driver in an otherwise macro-driven session.
LG Energy Solution rose 4 percent, supported by defensive positioning and continued expectations around battery demand, while Hanwha Solutions gained 2.7 percent on policy-driven momentum linked to energy and clean technology.
The KOSDAQ also closed sharply lower, reflecting broader risk aversion in growth-oriented sectors.
The tech-heavy index fell 3.02 percent to 1,107.10, with both foreign and institutional investors turning heavy sellers. Retail investors bought 300.4 billion won, partially offsetting the decline.
Across the region, markets largely tracked the global risk-off tone, but with notable divergence.
Japan’s Nikkei 225 fell 2.8 percent and Hong Kong's Hang Seng dropped 0.9 percent. In contrast, China’s Shanghai Composite edged up 0.24 percent, emerging as a rare outlier.
The divergence comes as China continues to absorb Iranian crude flows despite disruptions around the Strait of Hormuz, where supply risks have intensified following escalating conflict involving Iran, Israel and, as of Friday, Yemen's Houthi forces.
Brent crude rose 2.9 percent to $115.8 per barrel, while U.S. West Texas Intermediate gained 2 percent to $101.5, extending a rally driven by fears of prolonged supply disruption.
Market sentiment was further shaken by remarks from Donald Trump, who raised the possibility of U.S. control over Iranian oil infrastructure and potential ground operations. Although Trump later suggested negotiations with Iran were progressing, investors remained cautious as policy signals continued to shift.
The Korean won weakened sharply to 1,518.1 per dollar, reflecting sustained foreign outflows and heightened volatility.
Copyright ⓒ Aju Press All rights reserved.