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South Korea Stocks Plunge Then Rebound After Iran Conflict

New York Times Business •
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South Korea's benchmark stock index experienced a wild 24-hour ride after the U.S. and Israeli attacks on Iran sent markets into turmoil. The Korea Exchange in Seoul saw stocks plunge dramatically before rebounding, reflecting the market's volatile reaction to escalating Middle East tensions. This rollercoaster trading pattern came after months of explosive growth in the country's financial markets.

Investors watched screens nervously as prices fluctuated wildly, with the index dropping sharply before recovering much of its losses. The market's extreme volatility underscores South Korea's vulnerability to geopolitical shocks, given its heavy reliance on global trade and energy imports. The Korea Exchange, South Korea's primary stock market operator, saw trading volumes spike as investors rushed to react to breaking news from the Middle East.

The episode highlights how quickly regional conflicts can ripple through Asian markets, particularly those with strong economic ties to the United States. South Korea's export-driven economy remains especially sensitive to global instability, making it susceptible to sudden market swings triggered by international events. The rapid recovery suggests investor confidence in the market's resilience despite the initial panic.