NewTimeSpace News:Amid escalating tensions in the Middle East and surging oil prices, investors further trimmed risk exposure, sending South Korean equities plummeting again on Monday (March 9). The Korea Composite Stock Price Index (KOSPI) plunged 8%, triggering circuit breakers. On a broader view, the benchmark had already tumbled 11% last week.

On the constituent front, chip giants Samsung Electronics and SK Hynix once again emerged as the biggest drags on the benchmark index, each dropping over 8% on Monday.Xtrackers MSCI Korea UCITS ETF(02848.HK) opened lower and fluctuated, at one point diving more than 10% intraday.

According to Hong Kong Exchange data,Xtrackers MSCI Korea UCITS ETF(02848.HK) tracks the MSCI Korea 20/35 Custom Index. This is a "capped index" designed by MSCI to comply with EU UCITS fund regulatory requirements. While maintaining representation and investability of the Korean large- and mid-cap equity market, it reduces single-company risk through hard weight caps. SK Hynix, Samsung Electronics, NAVER, Hyundai Motor, and Shinhan Financial Group are all among the top ten constituents.

On the policy front, the Bank of Korea and the Ministry of Economy and Finance held an emergency meeting last week. To guard against further market volatility, the Financial Services Commission (FSC) recommended last week that market stabilization measures be actively activated. Meanwhile, participants agreed that, given continued improvements in corporate earnings, expectations for capital market-friendly policies, and sustained fund inflows into capital markets, the likelihood of a "trend decline" in the Korean market remains low.

Currently, most institutions remain firmly bullish on South Korean equities. Data compiled by Goldman Sachs shows that from the April 9, 2025 low to the end-of-February 2026 high, the KOSPI rallied a cumulative 176%. Even calculating from the November 21, 2025 interim low, gains reached as high as 65%. Against this backdrop, the current 20% correction from the February 26 closing high represents only half of the recent gains and less than one-third of the total rally.

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