South Korean shares fell sharply on Friday as oil prices remained high, fueling inflation concerns and weighing on investor sentiment ahead of key U.S. inflation data.
Escalating Middle East tensions also triggered a sell-off in U.S. equities overnight. Oil prices eased Friday but remained on track to close the week above $100 a barrel, with Brent crude down 1.5% at $105.99 and West Texas Intermediate crude down 1.3% at $101.20.
The Dow Jones Industrial Average fell 0.6%, while the S&P 500 and Nasdaq Composite declined 0.6% and 0.7%, respectively, marking their fourth consecutive losing sessions.
The Korea Composite Stock Price Index, or Kospi, decreased by 124.01 points, or about 1.8%, to close at 6,909.91. The Kosdaq also fell by 16.28 points, or 2%, to close at 820.64.
In economic news, South Korea's privacy watchdog said companies suffering personal information leaks affecting over 10 million people will face strengthened penalties starting this week.
The revised law, effective Friday, allows fines of up to 10% of sales for breaches caused by intentional misconduct or gross negligence, citing the Personal Information Protection Commission.
Repeat offenders within three years or those ignoring corrective orders also face punishment, up from the previous 3% cap.
The commission added that penalties may be reduced by up to 40% based on a company's investment in data protection and safety measures.
In corporate news, Hanwha Aerospace (KRX:012450) secured a 641.09 billion-won order to supply Chunmoo multiple launch rocket systems (MLRS) to Croatia's Ministry of Defence.
The Friday disclosure confirms earlier reports that Hanwha was nearing a deal with Croatia. The company had said on Sept. 7 that it was in discussions with the customer, but the export deal had yet to be finalized.
Under the payment terms, 25% of the contract value will be paid within 30 calendar days of contract signing, 35% within 30 calendar days after 12 months from contract signing, and the remaining amount within 30 days of delivery.
Shares of Hanwha Aerospace added over 1% at market close.