Lee Eog-weon

Money Moves

Executing market stabilization program

South Korea's stock market was the best performer among major economies in early 2026, riding a semiconductor boom that pushed the benchmark KOSPI index to an all-time high of 6,347 on February 27. Five days later, the index had lost nearly 20% of its value in the worst two-day crash in the country's history, triggered by the United States and Israel striking Iran and the subsequent closure of the Strait of Hormuz—the narrow waterway through which 95% of South Korea's Middle Eastern oil imports flow. By late March, nearly four weeks into the crisis, the KOSPI had recovered to around 5,800, recouping roughly half its losses, though it remains significantly below its pre-crisis peak.

Updated Mar 27