South Korea’s financial markets came under simultaneous pressure from Middle East-driven oil prices, higher interest-rate expectations and a weaker won. The KOSPI fell 1.76% to 6,909.91 after briefly touching 6,802.50, just two trading days after closing above 7,000 for the first time in 33 trading days. The KOSDAQ declined, with newer reporting putting the fall at 1.52% to 824.17 versus an earlier 1.95% account. The three-year Korean Treasury yield reached 4.014%, its first move above 4% in two years and 10 months, while the 10-year yield reached 4.540%. WTI rose 6.69% to $102.48 a barrel and Brent reached $107.63 amid disruptions around the Bab el-Mandeb Strait and Strait of Hormuz. The won weakened to 1,345.9 per dollar, while South Korean August inflation accelerated to 3.1% and U.S. core CPI rose 0.3% month on month against a 0.2% forecast. Strong semiconductor exports and AI investment expectations continued to support earnings, but profit-taking, higher funding costs and Hormuz risks constrained the outlook. SK Securities retained a 7,500 KOSPI target, while analysts identified upcoming Samsung Electronics and SK Hynix earnings as a key test.