South Korean Shares Decline Over 3% on Tech Losses, Rising Oil Prices Amid Middle East Tensions
South Korean shares fell more than 3% on Monday as investors sold technology heavyweights amid ongoing geopolitical uncertainty in the Middle East and increasing oil prices.Global and U.S. oil prices extended gains early Monday after attacks on Saudi oil infrastructure and further targeting of commercial vessels in the Strait of Hormuz. Brent crude rose nearly 3% to above $107 a barrel, while West Texas Intermediate crude gained about 3% to approach $103 a barrel.The Korea Composite Stock Price Index, or Kospi, decreased by 225.54 points, or about 3.3%, to close at 6,684.37. The Kosdaq also fell by 13.85 points, or 1.7%, to close at 806.79.In economic news, South Korea's first investment project in the U.S. under the bilateral tariff agreement signed in 2025 is expected to close soon, pending further negotiations, Yonhap News reported Sunday, citing Industry Minister Kim Jung-kwan.South Korea aims to finalize and potentially announce the agreement later this week. The investment project is part of the country's $350 billion investment commitment made in exchange for lowering U.S. reciprocal tariffs to 15% from 25%. Potential destinations comprise a large gas-fired power plant in Texas and a nuclear power project.In corporate news, SK Biopharmaceuticals (KRX:326030) secured a 71.6 billion won pharmaceutical supply agreement for its anti-seizure medication Cenobamate with its US unit SK Life Science, according to a Monday filing with the Korea Exchange.The product is marketed in the US as XCOPRI. Cenobamate is a drug for treating epilepsy.Shares of the company fell nearly 1% at market close.In other news, Samsung Heavy Industries (KRX:010140) secured a 1.408 trillion won contract to build four LNG carriers for an undisclosed Oceania-based client, according to a Monday filing with the Korean Exchange.The contract is expected to be fulfilled by Sept. 28, 2029.Shares of Samsung Heavy Industries added over 3% at market close.
