Thailand, South Korea shares plunge, triggering circuit breaker — what investors need to know

South Korea and Thailand stock market crash: Investors across Asia faced a turbulent trading week as stock markets in Thailand and South Korea plunged sharply, forcing trading halts and erasing massive market value amid escalating tensions in the Middle East.

Thailand SET Index Falls 8%, Trading Halted After Circuit Breaker Triggered

In Thailand, the benchmark SET Index dropped 8%, automatically triggering a circuit breaker on the Stock Exchange of Thailand. Trading was suspended for 30 minutes starting at 12:18 p.m. local time. As per a Bloomberg report, if losses deepen to 15%, another 30-minute halt will follow.

Iran War Impact: Why Rising Oil Prices Are Hurting Thai Markets

The selloff reflects growing investor anxiety over the duration and impact of the Iran war. Thailand is considered one of the region’s most vulnerable economies to rising oil prices because of its heavy energy imports. Higher fuel costs are raising concerns about inflation, pressure on the current account, and shrinking corporate margins. Disruptions to air routes could also hurt Thailand’s vital tourism sector.


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Thai Stocks Erase Post-Election Gains After Sharp Selloff

The decline has effectively wiped out nearly 14% in gains recorded after Prime Minister Anutin Charnvirakul’s decisive election victory last month, trimming the index’s gain for the year to 7.1%. Thai stocks were also weighed down by a broad unwinding of artificial intelligence-related trades, with Delta Electronics Thailand Pcl among the biggest drags on the market.

South Korea’s KOSPI Plunges 12% in Biggest Drop Since 1980

The situation was even more dramatic in South Korea. The benchmark KOSPI plunged 12.06% to close at 5,093.54, its largest daily percentage loss since its launch in 1980, as per a Reuters report. During the session, losses reached as much as 12.65%. Circuit breakers were activated for the first time since August 2024, halting trading for 20 minutes. Programme trading curbs were also triggered but failed to stop the slide.

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$553 Billion Wiped Out: South Korea Market Cap Shrinks in Two Days

Over the past two days, the South Korean market has lost 817.6 trillion won ($553.82 billion) in market capitalisation. On Tuesday alone, the index had already fallen 7.24%.

Oil Dependency Fears Shake South Korean Economy

South Korea’s heavy reliance on Middle Eastern oil has amplified investor fears. The country is the world’s fourth-largest oil buyer, with around 70% of its crude imports coming from the region. As oil prices surged following military strikes and retaliatory attacks across Iran and the Gulf, investors moved quickly to cut risk in energy-dependent markets.

The sharp drop marks a sudden reversal for Korean equities, which had doubled over the past year in an artificial intelligence-driven rally and were among Asia’s best performers. Traders described the move as a rapid unwinding of crowded positions and risk reduction rather than a sign of deteriorating corporate earnings.

Korean Won Breaches 1,500 Per Dollar Amid Market Volatility

Currency markets reflected the pressure. The won briefly breached the psychologically important 1,500 per dollar level overnight, touching 1,505.8, its weakest level since March 2009, before closing at 1,485.7. It later strengthened slightly to 1,476.2.

Samsung, SK Hynix, Hyundai Motor Lead Losses in Market Slump

Major stocks saw steep losses, including Samsung Electronics, SK Hynix, Hyundai Motor, and Korean Air Lines.

FAQs

Why did Thailand’s stock market halt trading?
The SET Index fell 8%, triggering an automatic circuit breaker.

Did trading stop in South Korea too?
Yes, circuit breakers were triggered, halting trading for 20 minutes.