South Korean shares plunged 9% on Monday amid fresh tensions in the Middle East after Iran said it carried out strikes on U.S. military sites in Bahrain, Kuwait, Oman and Jordan in retaliation for new U.S. bombardments on its southern coast.
The U.S. strikes came amid escalating tensions over the Strait of Hormuz, with explosions reported in Bandar Abbas, Sirik, Jask and Qeshm Island. Vessel traffic through the Strait of Hormuz has fallen to a five-week low, according to Al Jazeera.
The Korea Composite Stock Price Index or Kospi decreased by 669.01 points, or 9%, to end at 6,806.93. The Kosdaq also fell by 38.07 points, or 4.5%, to close at 799.36.
In economic news, South Korea's exports jumped 53.9% to $29.8 billion in the first 10 days of May from $19.4 billion a year earlier, Monday data from the Korea Customs Service showed.
Imports increased 17.4% to $23.5 billion from $20 billion a year earlier, resulting in a $6.4 billion trade surplus.
In corporate news, Samsung Electronics (KRX:005930) plans to begin operations at its Yongin chip facility in 2029, accelerating the timeline from its previous target of 2030 or 2031, Reuters reported Monday.
The company moved up the schedule to meet strong demand for AI-driven memory chips, according to the report.
The chipmaker did not immediately respond to' request for comment.
Shares of the tech giant fell nearly 11% at market close.