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Analysis Iran war exposes structural risks in South Korea’s global trade modelConflict shows how maritime chokepoints can quickly destabilize energy imports, financial markets and policy planning The U.S.-Israel campaign against Iran has exposed a structural vulnerability in South Korea’s economic model after geopolitical shocks in the Persian Gulf triggered circuit breakers and derivatives sidecars on Korean equity markets this week. The Korea Exchange suspended trading on both the KOSPI and KOSDAQ markets after the benchmark index plunged more than 8% amid escalating Middle East tensions. Program trading was halted through sell-side sidecars before broader circuit breakers froze activity for 20 minutes as volatility spread. The sequence of events demonstrated how quickly disruptions far from the Korean Peninsula can affect Seoul’s financial system. Foreign investors dumped Korean © Korea Risk Group. All rights reserved. |





