South Korean stocks drop 2 percent as Middle East conflict sparks energy fears

South Korean shares dropped by nearly two percent on Monday due to fresh attacks in the Middle East that raised worries about world energy supplies. ## Market Pressure Foreign investors sold off their holdings while major chipmakers suffered heavy losses, pushing the benchmark KOSPI index down. At the same time, the South Korean won grew stronger, reaching its highest level since October 2024. ## Context Fears of conflict in the Middle East often send shockwaves through global stock markets because the region supplies a huge portion of the world's oil and gas. When energy supplies look uncertain, investors tend to pull their money out of stock markets in places like South Korea that rely heavily on imported fuel.