Korean Stock Market Plunges 7% Amid Geopolitical Tensions, Bitcoin Surges Toward $70K
The KOSPI index suffered its worst single-day decline in 19 months, dropping 7.24% as markets reopened after a holiday weekend. Nearly ₩390 trillion ($270 billion) in market value evaporated amid escalating Middle East tensions following joint U.S.-Israel strikes on Iran.
Global risk assets reacted violently to Iran's threat to blockade the Strait of Hormuz, with crude oil spiking 13% to $82/barrel. South Korea's heavy reliance on Gulf oil imports - approximately 2.76 million barrels daily - made it particularly vulnerable to supply chain disruptions.
While traditional markets reeled, bitcoin demonstrated its uncorrelated nature by rallying toward $70,000. The divergence highlights growing institutional recognition of crypto as both a hedge against geopolitical risk and a standalone asset class.
