SEOUL, March 09 (AJP) - South Korean shares extended a freefall Monday as markets entered the second week of the war in Iran, with the conflict widening after Tehran named the son of slain Supreme Leader Ali Khamenei as the country’s new leader — a move seen as defying the United States and Israel and signaling a prolonged confrontation likely to rattle global energy markets.
South Korea’s benchmark KOSPI tumbled 6.65 percent to 5,213.61, while the tech-heavy KOSDAQ fell 5.74 percent to 1,088.35 as of 9:01 a.m., pressured by surging oil prices. The won weakened sharply, with the dollar rising to 1,493.10 won.
International oil prices surged above the psychologically important $100-per-barrel level for the first time in nearly four years.
Defense-related shares were among the few gainers in an otherwise broad market decline. Hanwha Aerospace and Hanwha Systems rose 1.22 percent and 6.04 percent at the open, respectively, while LIG Nex1 — the developer of the Cheongung-II missile defense system — gained about 4.44 percent in early trading after surging roughly 64 percent last week.
According to Rep. Yoo Yong-won of the National Defense Committee, about 60 interceptor missiles were launched from two Cheongung-II batteries deployed in the United Arab Emirates, achieving a reported interception rate of around 96 percent.
The UAE has also asked Seoul to accelerate deliveries of additional Cheongung-II batteries under an existing contract and supply interceptor missiles ahead of schedule.
KOSPI top players became primary targets of institutional selling.
Samsung Electronics fell about 7.07 percent as its union moved ahead with a vote on strike. SK hynix also dropped 6.71 percent.
Hyundai Motor declined 7.59 percent, while affiliate Kia retreated 7.90 percent in early trading after a recent Bernstein Research report identified Hyundai Motor among automakers most exposed to the widening conflict in Iran.
The market turmoil comes as the Middle East war enters its second week.
Iran on Sunday named Mojtaba Khamenei, the son of slain Supreme Leader Ali Khamenei, as the country’s new supreme leader after the elder Khamenei was killed along with senior regime figures in U.S.-Israeli airstrikes on Feb. 28.
The move widely interpreted as consolidating hardline control in Tehran raised fears that the conflict with the United States and Israel could stretch into a prolonged regional confrontation.
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