KOSPI Surges 11% in Historic Rebound, Outpaces Crypto Amid Geopolitical Fears

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Korea’s KOSPI Surges 11% in Historic Rebound, Outpacing Crypto

After suffering its biggest single-day drop ever, South Korea’s main stock index, the KOSPI, rebounded strongly on Thursday, jumping over 11%. This dramatic increase marks one of the most significant reversals in the index’s history.

No major economy feels the effects of Middle Eastern instability more strongly than South Korea, and recent events have clearly demonstrated this.

The Bounce of KOSPI and KOSDAQ

South Korea’s main stock markets, the KOSPI and KOSDAQ, are very active trading hubs in Asia and offer a good indication of how individual investors in Korea are feeling about the market.

By late morning, the KOSPI rose to 5,682, a significant increase from Wednesday’s closing value of 5,093, after briefly reaching 5,715 earlier in the day. The KOSDAQ also rebounded strongly, climbing over 11% and surpassing the 1,000 mark. Trading began with a buying surge, a stark reversal from the previous day’s selling pressure which had triggered a complete market halt. The Korean won also gained value, moving from an overnight high of 1,505 to around 1,461.

Oil prices remained steady, with Brent crude at $81.40 and WTI at $74.66. This, combined with news of potential talks between the US and Iran, improved investor confidence in Asian markets. Previously, US stock markets had closed with gains on Wednesday, particularly in tech stocks like Tesla, Amazon, and Nvidia.

Shares of Samsung Electronics and SK Hynix, both of which had fallen significantly – around 21% and 22.75% respectively – from their highs in late February, saw a strong recovery, jumping 13–15% in early trading. Investors who had previously sold these stocks during the market downturn began buying again, adding over 710 billion won in purchases by mid-morning. Individual investors also contributed, adding another 600 billion won.

Why Korea Fell Harder Than Anyone Else

As a crypto investor, I’ve been watching the global markets closely, and the recent swings have been pretty dramatic. What happened in Korea on March 3rd and 4th was especially intense – the KOSPI and KOSDAQ both plummeted, actually seeing the biggest and second biggest drops worldwide. To put it in perspective, Japan and Taiwan also fell, but by much smaller amounts, and China’s decline was even less. Surprisingly, US markets barely reacted, with declines under 0.35% overall. It really highlights how different markets are responding to the current situation.

As a crypto investor, I was really shaken by what happened in Korea this week. They rely heavily on energy imports from the Middle East and their economy thrives on exports, so any disruption in global trade hits them hard. When the news came out about potential strikes on Iran and fears of the Strait of Hormuz being closed, all the risk seemed to land in Seoul. The stock market, the KOSPI, absolutely plummeted – it fell by over 12% on Wednesday, which was the biggest single-day drop in 25 years, even worse than the day after 9/11. It’s a stark reminder of how geopolitical events can impact markets, and especially those heavily reliant on international trade.

What Comes Next

Experts are hopeful, but emphasize that future progress relies on global political events. One analyst believes that a long-term blockade of the Strait of Hormuz would ultimately harm Iran by reducing its income and potentially leading to military action. Another suggests that a successful mediator could be crucial, and currently believes that market conditions make this a good time to invest.

Mirae Asset predicts the KOSPI stock market will likely recover to around 5,800 points soon. Kiwoom Securities believes the recent two-day drop in prices already reflects all the concerns about potential risks related to the war.

What It Means for Crypto

As BeInCrypto reported yesterday, individual investors in Korea remained relatively steady during the recent crypto market downturn – some new tokens on Upbit and Bithumb even saw significant price increases despite the falling stock market. However, today’s recovery in the stock market could change that trend.

The stock market rebounded strongly this morning, with over 1.3 trillion won flowing back in from both foreign and local investors. This recovery comes after cryptocurrency trading volume in Korea had already fallen significantly – by over 80% – during the recent stock market surge. Now, this quick rebound in stocks could pull money away from cryptocurrencies that saw a temporary increase during a brief period of market panic.

The South Korean won strengthened, moving from 1,505 to around 1,461. This recovery decreased the attractiveness of using currency hedges, which had recently driven up the price of digital assets. We’re already seeing this impact the data: while Bitcoin’s dollar value increased by 6.4% in the last 24 hours, it only rose about 5% when priced in won on the Upbit exchange. The won’s recovery essentially offset over 1% of Bitcoin’s gains.

If global political tensions calm down, South Korea’s main stock market index, the KOSPI, could reach 5,800 points, according to Mirae Asset. This could also lead to increased investment in cryptocurrencies by Korean retail investors, who are known to be particularly responsive to stock market trends, though the primary driver would be equities, not crypto itself.

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2026-03-05 05:46