Fear Grips South Korea: KOSPI-KOSDAQ Crash 8%, Trading Halted by Circuit Breaker

• South Korea's KOSPI and KOSDAQ indices plummeted by approximately 8% on March 4, 2026, triggering a circuit breaker and halting trading for 20 minutes.
• The crash was primarily driven by escalating geopolitical tensions following reports of US and Israel military action against Iran, causing crude oil prices to surge by 13%.
• As a major oil-importing nation, South Korea faced investor panic over increased costs and reduced profits, leading to massive selling by foreign and institutional investors worth 5.14 trillion won.
• The South Korean won weakened significantly, approaching 1,500 per dollar, further eroding foreign investor confidence and exacerbating market pressure.
• Simultaneous circuit breakers on both KOSPI and KOSDAQ are rare, last seen during the COVID-19 pandemic in 2020; some experts view the decline as a potential overreaction or consolidation.