Kospi tanks 8% despite US-Iran war optimism; know why

South Korean stocks were hammered on Tuesday as a global sell-off in chipmakers sent technology heavyweights sharply lower, with rising competition from China and a steep fall in SK Hynix's US-listed shares weighing heavily on investor sentiment.

The benchmark Kospi plunged 551 points, or 8.1%, to 6,2505. The steep decline triggered "sidecar" trading curbs on both the Kospi and the junior Kosdaq index, temporarily halting programme trading.