(LEAD) Seoul shares dip nearly 3 pct on escalating Iran crisis, hawkish Fed; won slides to 17-yr low | Yonhap News Agency

## Summary
OK (ATTN: ADDS details in headline, lead, more info in bottom 2 paras) SEOUL, March 19 (Yonhap) -- South Korean shares ended almost 3 percent lower Thursday as concerns over inflation brewed after attacks on the Middle East's critical energy facilities, and the U.S. A dealing room at Hana Bank in Seoul on March 19, 2026 (Yonhap) Experts said investors' risk appetite was sapped as Israel attacked Iran's largest South Pars gas field, and Iran hit back with a strike on a major liquefied natural gas site in Qatar, pushing up global oil prices again. The yield on three-year Treasurys rose 6.8 basis points to 3.329 percent, and the return on the benchmark five-year government bonds gained 7.6 basis points to 3.587 percent. nyway@yna.co.kr (END) Related Articles (2nd LD) Seoul stocks jump over 5 pct on chip rally (2nd LD) Seoul shares rise for 2nd day on oil price retreat, tech boost (LEAD) Uncertainty over U.S. monetary policy deepens amid Middle East crisis: BOK (LEAD) Korean currency falls sharply past 1,500 won amid oil price surge Keywords #stocks Articles with issue keywords Most Liked Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Police vow zero tolerance for terror threats against BTS comeback concert Most Saved Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life (2nd LD) N. Korea's national sports festival prev (LEAD) Seoul shares dip nearly 3 pct on escalating Iran crisis, hawkish Fed; won slides to 17-yr low Next (LEAD) Seoul shares dip nearly 3 pct on escalating Iran crisis, hawkish Fed; won slides to 17-yr low

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(ATTN: ADDS details in headline, lead, more info in bottom 2 paras)
SEOUL, March 19 (Yonhap) -- South Korean shares ended almost 3 percent lower Thursday as concerns over inflation brewed after attacks on the Middle East's critical energy facilities, and the U.S. Federal Reserve chief made hawkish comments following a rate freeze decision. The local currency slid against the U.S. dollar to the lowest level in 17 years.
The benchmark Korea Composite Stock Price Index (KOSPI) plummeted 161.81 points, or 2.73 percent, to close at 5,763.22, ending its 3-day rise.
Trade volume was heavy at 1.17 billion shares worth 22.6 trillion won (US$15 billion), with losers outnumbering winners 678 to 204.
Foreigners and institutions dumped local shares worth 1.87 trillion won and 666 billion won, respectively, while retail investors chipped in 2.4 trillion won.
Overnight, the Dow Jones Industrial Average dipped 1.63 percent, while the tech-heavy Nasdaq Composite slid 1.46 percent, and the S&P 500 pulled back 1.36 percent.
A dealing room at Hana Bank in Seoul on March 19, 2026 (Yonhap)
Experts said investors' risk appetite was sapped as Israel attacked Iran's largest South Pars gas field, and Iran hit back with a strike on a major liquefied natural gas site in Qatar, pushing up global oil prices again.
Following the attacks, the Brent crude price, the international oil benchmark, rose to around the US$110 per barrel level, while the price of U.S. benchmark West Texas Intermediate (WTI) neared $100 per barrel.
U.S. Federal Reserve Chair Jerome Powell's remarks after the Fed's decision to maintain its policy rate in the 3.5-3.75 percent range also dragged down market sentiment.
At a press conference, Fed Chair Jerome Powell said the surge in oil prices has increased inflationary pressures, signaling a cautious stance on the timing of further rate cuts.
On top of that, the latest U.S. Producer Price Index (PPI) showed that producer prices in the world's largest economy increased by the most in seven months in February, raising further concerns over inflation.
"Risk-off sentiment expanded with the hotter-than-expected February PPI and Powell's remarks on inflation concerns," Lee Kyoung-min, an analyst at Daishin Securities, said.
Attacks on critical Middle Eastern energy infrastructure also fueled such woes, he added.
A dealing room at Hana Bank in Seoul on March 19, 2026 (Yonhap)
In Seoul, market top-cap Samsung Electronics slid 3.84 percent to 200,500 won, and its chipmaking rival SK hynix tumbled 4.07 percent to 1.01 million won.
Auto giant Hyundai Motor shed 4.22 percent to 522,000 won, and its sister Kia went down 2.63 percent to 170,500 won.
Artificial intelligence (AI) investment firm SK Square dipped 3.02 percent to 611,000 won, and leading battery maker LG Energy Solution slipped 3.26 percent to 371,000 won.
Major shipbuilders also lost ground, with HD Hyundai Heavy dropping 3.9 percent to 567,000 won, and Hanwha Ocean contracting 2.18 percent to 130,000 won.
Bio giant Samsung Biologics pulled back 2.52 percent to 1.59 million won, and Celltrion tumbled 3.58 percent to 202,000 won.
Financial shares were among the few gainers, with KB Financial rising 0.65 percent to 155,700 won and Shinhan Financial adding 1.58 percent to 96,500 won.
Samsung Electro-Mechanics jumped 3.34 percent to 479,500 won.
The Korean won was quoted at 1,501 won against the U.S. dollar at 3:30 p.m., sliding 17.9 won from the previous session, to mark the weakest level since March 10, 2009, when the won hit 1,511.1 during the global financial crisis.
Bond prices, which move inversely to yields, closed lower. The yield on three-year Treasurys rose 6.8 basis points to 3.329 percent, and the return on the benchmark five-year government bonds gained 7.6 basis points to 3.587 percent.
nyway@yna.co.kr
(END)
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## Expert Analysis

### Merits
- Korea committed to expanding nuclear, missile programs; poses 'significant' threats to S.

### Areas for Consideration
- A dealing room at Hana Bank in Seoul on March 19, 2026 (Yonhap) Experts said investors' risk appetite was sapped as Israel attacked Iran's largest South Pars gas field, and Iran hit back with a strike on a major liquefied natural gas site in Qatar, pushing up global oil prices again.
- Producer Price Index (PPI) showed that producer prices in the world's largest economy increased by the most in seven months in February, raising further concerns over inflation. "Risk-off sentiment expanded with the hotter-than-expected February PPI and Powell's remarks on inflation concerns," Lee Kyoung-min, an analyst at Daishin Securities, said.
- The yield on three-year Treasurys rose 6.8 basis points to 3.329 percent, and the return on the benchmark five-year government bonds gained 7.6 basis points to 3.587 percent. nyway@yna.co.kr (END) Related Articles (2nd LD) Seoul stocks jump over 5 pct on chip rally (2nd LD) Seoul shares rise for 2nd day on oil price retreat, tech boost (LEAD) Uncertainty over U.S. monetary policy deepens amid Middle East crisis: BOK (LEAD) Korean currency falls sharply past 1,500 won amid oil price surge Keywords #stocks Articles with issue keywords Most Liked Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Police vow zero tolerance for terror threats against BTS comeback concert Most Saved Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life (2nd LD) N.

### Implications
- OK (ATTN: ADDS details in headline, lead, more info in bottom 2 paras) SEOUL, March 19 (Yonhap) -- South Korean shares ended almost 3 percent lower Thursday as concerns over inflation brewed after attacks on the Middle East's critical energy facilities, and the U.S.
- Federal Reserve Chair Jerome Powell's remarks after the Fed's decision to maintain its policy rate in the 3.5-3.75 percent range also dragged down market sentiment.
- The yield on three-year Treasurys rose 6.8 basis points to 3.329 percent, and the return on the benchmark five-year government bonds gained 7.6 basis points to 3.587 percent. nyway@yna.co.kr (END) Related Articles (2nd LD) Seoul stocks jump over 5 pct on chip rally (2nd LD) Seoul shares rise for 2nd day on oil price retreat, tech boost (LEAD) Uncertainty over U.S. monetary policy deepens amid Middle East crisis: BOK (LEAD) Korean currency falls sharply past 1,500 won amid oil price surge Keywords #stocks Articles with issue keywords Most Liked Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life Ex-U.S. officials voice concerns about Trump gov't 'vacating' deterrence assets from Indo-Pacific amid Iran war Police vow zero tolerance for terror threats against BTS comeback concert Most Saved Four decades of Damien Hirst on display at MMCA, from shark to cherry blossoms (LEAD) FM Cho sidesteps questions on whether U.S. asked Seoul to send warships to Middle East 16th Gwangju Biennale: You must change your life (2nd LD) N.
- Korea's national sports festival prev (LEAD) Seoul shares dip nearly 3 pct on escalating Iran crisis, hawkish Fed; won slides to 17-yr low Next (LEAD) Seoul shares dip nearly 3 pct on escalating Iran crisis, hawkish Fed; won slides to 17-yr low

### Expert Commentary
This article covers won, percent, seoul topics. Notable strengths include discussion of won. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 960.