India, Sept. 29 -- South Korea's benchmark KOSPI index closed sharply lower at 6,889.75, dropping 2.70% after markets fully reacted to escalating geopolitical tensions in the Middle East and a massive wave of foreign selling. While the index started with minor losses early in the session, intensifying risk aversion quickly accelerated the decline, pushing the KOSPI well below the psychologically critical 7,000 level.

Key Drivers Behind the Market Fall

The sharp decline was driven by a combination of global macroeconomic pressures and localized tech vulnerabilities:

Escalating Middle East Conflict: Geopolitical uncertainty intensified after the US rejected a conditional proposal from Iran regarding the Strait of Hormuz. This raised imme...