South Korean markets plummeted over five percent on Monday as fears of a deepening global trade war rattled investors across Asia. The sharp drop followed U.S. President Donald Trump’s imposition of aggressive tariffs, despite ongoing diplomatic efforts to ease tensions.
The benchmark KOSPI index fell 5.26 percent, or 129.57 points, closing at 2,335.85. The steep decline triggered a sidecar mechanism—used to temporarily halt program trading during extreme volatility—for the first time in eight months.
Market heavyweights bore the brunt of the sell-off, with Samsung Electronics shedding 4.28 percent and SK hynix plunging nearly 6.5 percent.
“South Korea is highly reliant on trade, so when the U.S. enacts harsh tariffs, our economy feels the shock more than most,” said Kim Dae-jong of Sejong University. He warned that Trump’s “America First” stance poses a serious threat to both South Korea’s economy and national security.
China retaliated on Friday by announcing 34 percent tariffs on all U.S. imports starting April 10, intensifying fears of a full-scale trade war and potential global recession.
The impact was widespread across Asia: Japan’s Nikkei 225 slumped 6.5 percent in early trading, while markets in Taiwan and Singapore dropped nearly 10 percent and 8.5 percent respectively.
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