South Korea’s Kospi tanks 8% despite US-Iran war optimism. Here are 4 reasons why
- Posted on July 28, 2026
- By Business News Today
- 1 Views
- 1 min read
South Korea's primary stock index experienced a dramatic selloff, declining over 8% despite geopolitical tensions between the United States and Iran potentially boosting market sentiment. The sharp correction, which surpassed 550 points, was severe enough to activate automatic trading restrictions on both major and secondary exchanges. This paradoxical market behavior reflects deeper concerns about economic fundamentals and investor risk appetite, overshadowing any safe-haven demand typically associated with international conflicts.
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