'Heart-Stopping, What's Wrong with My Balance?' Korean Stock Market Swings on Every "War to End" and "Strong Strike" Remark from Trump

KOSPI surges over 8% on Trump's "ceasefire soon" remark on April 1
Market reverses downward on April 2 after Trump says, "We will strike Iran hard for 2 to 3 weeks"
Extreme volatility continues as sharp swings follow the ongoing war situation

Following U.S. President Donald Trump's national address regarding the Iran war, the domestic stock market is plummeting. On April 2, at the dealing room of Hana Bank headquarters in Jung-gu, Seoul, an employee is monitoring the stock market, exchange rates, and the KOSDAQ. On the day, the KOSPI began trading at 5,551.59, up 1.33% from the previous day, and the KOSDAQ started with a 1.25% increase. April 2, 2026 Photo by Jo Yongjun

The domestic stock market is experiencing extreme volatility as both optimism that the war between the United States and Iran will end soon and concerns that the war will continue for some time—with the Strait of Hormuz remaining blocked—coexist. Experts warn that investors should exercise caution, as the market is showing highly volatile "seesaw" movements, with every statement from President Donald Trump having a significant impact on the market.

Trump's Statement: "In the Next 2-3 Weeks, Iran Will Be Hit Hard" Triggers a Downturn

On April 2, the KOSPI opened at 5551.69, up 1.33% from the previous trading day, but reversed course and, as of 10:22 a.m., was trading 1.20% lower at 5413.20. At the same time, the KOSDAQ was trading at 1100.75, down 1.38% compared to the previous session.

President Trump, in a national address at 10 a.m. KST on the same day, stated, "We are currently in the process of ending the war, but for the next two to three weeks, we will strike Iran with extreme force." Following news of Trump's remarks, the Korean stock market plunged sharply. The won-dollar exchange rate also climbed to the 1,517 won range.

U.S. President Donald Trump announced a policy to end the U.S.-Iran war within two to three weeks. On April 2, at the dealing room of Hana Bank headquarters in Jung-gu, Seoul, employees monitored the stock market, exchange rates, and KOSDAQ ahead of the public address related to the Iran war. On this day, the KOSPI opened at 5551.59, up 1.33% from the previous trading day, and the KOSDAQ started with a 1.25% increase. Photo by Jo Yongjun, April 2, 2026

Until the previous day, optimism over an end to the war had been reflected in the market, with the New York Stock Exchange rising; however, the Korean stock market is declining due to the impact of Trump's address. Overnight, the Dow Jones Industrial Average rose by 0.48% from the previous session, and the Nasdaq Composite Index increased by 1.16%. The rebound in the semiconductor sector was significant, with the share prices of memory chip makers such as Micron (up 8.9%), SanDisk (up 9.0%), and Western Digital (up 10.1%) soaring.

Suh Sangyoung, a researcher at Mirae Asset Securities, analyzed, "The New York stock market rose on expectations that the war could end as communication channels between the United States and Iran opened. In addition, employment, manufacturing, and consumption indicators all exceeded market expectations, raising hopes for a soft landing of the economy, which also contributed to the gains."

Trump's "War Will End Soon" Remark Sends KOSPI Surging Over 8% the Previous Day—Second Highest Gain in History

The Korean stock market continues to experience extreme volatility, repeatedly soaring and plunging in response to President Trump's comments regarding the war. According to the Korea Exchange, since the outbreak of the Middle East war at the end of February, the KOSPI sidecar mechanism has been triggered a total of eight times. Of these eight instances, half were buy-side sidecars and the remainder were sell-side. When a sidecar is triggered, program trading orders are temporarily suspended to cool an overheated market.

The market's swings have also been extremely large. The previous day, the KOSPI surged 426.24 points compared to the prior session—a single-day gain that ranks as the second largest in Korean stock market history. The all-time record for the KOSPI was set on March 5, when it jumped by 490.36 points. At that time, the market had plunged immediately after a U.S.-Israel airstrike on Iran, but rebounded sharply the following day as bargain hunters moved in. The two largest single-day jumps in KOSPI history were both caused by the U.S. and President Trump’s actions in the conflict with Iran.

In terms of percentage gain, it ranks as the fifth highest on record. The all-time highest percentage increase was 11.95% on October 30, 2008, during the global financial crisis. The second highest was on March 5, and the third was 8.6% on March 24, 2020, when the U.S. announced unlimited quantitative easing amid the COVID-19 crisis, sending the market soaring.

Han Ji-young, a researcher at Kiwoom Securities, said, "Two days ago, the KOSPI dropped by more than 4%, but yesterday it soared by over 8%. Since March, the sidecar has been triggered eight times, making the domestic stock market feel like a massive leveraged battlefield. The volatility is likely to continue, depending on President Trump's statements."

This content was produced with the assistance of AI translation services.