Korean investors seek altcoins as KOSPI posts record drop

South Korea’s KOSPI fell more than 12% on Wednesday, marking its largest single-day drop on record, as fears tied to the widening US–Israel–Iran conflict rattled markets. KOSDAQ declined over 10%, and the Korean Stock Exchange imposed a temporary trading halt after both indices fell more than 8%.

Stocks across Japan, Hong Kong and China also slipped as oil prices jumped and the closure of the Strait of Hormuz raised supply concerns; Japan and South Korea rely heavily on imported fossil fuels, accounting for 87% and 81% of their energy use respectively. Google Finance data shows the KOSPI dropped 12.06%, a fall market analyst David Scutt described as the biggest daily percentage loss on record.

The move followed a 7.2% decline on Tuesday, the worst two-day performance in decades, after an 85% surge since June 2025 that took the index above 5,000 in January 2026. During the campaign, President Lee Jae-myung urged greater public interest in the market, saying, "I don’t think Kospi 5000 is that difficult.

South Korea

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