[DigitalToday reporter Ji-young Lee] South Korea's KOSPI plunged more than 7 percent on March 3 on Middle East war risks and fell below the 5,800 mark.

The KOSPI closed at 5,791.91, down 452.22 points, or 7.24 percent, from the previous session.

The index opened down 78.98 points, or 1.26 percent, at 6,165.15 and gradually extended losses. It slid to as low as 5,791.65 late in the session.

After breaking through 6,000 for the first time ever on Feb. 25, the KOSPI gave up the 6,000 level after 3 trading sessions.

A temporary curbs mechanism known as a sidecar was also triggered after KOSPI 200 futures fell more than 5 percent around noon. By contrast, defense, shipping and refining stocks surged on expectations they would benefit from the war.

The Kosdaq closed at 1,137.70, down 55.08 points, or 4.62 percent, from the previous session.

Analysts said the KOSPI's sharp decline on the day was driven by 부담 from its recent steep rise, with concerns over a war-driven spike in oil prices in the Middle East acting as a trigger.

Sang-yeop Kim (김상엽), a researcher at KB Securities, said the domestic market's losses widened as clashes between the United States and Iran intensified over the long holiday weekend. He said worries about a prolonged war and a possible closure of the Strait of Hormuz stoked oil-price and inflation risks, hitting markets at home and abroad.

He added that expanded volatility in the stock market is expected to continue this week.