South Korean stocks had been rallying on growing expectations that the KOSPI would settle above 6,000, but are now showing sharp volatility as Middle East-driven geopolitical risks expand. Concerns are being raised that the war in the region could be prolonged. That has simultaneously increased uncertainty over international oil prices and global financial markets.

In the KOSPI and KOSDAQ markets, sharp intraday rallies and selloffs have repeated since last week. Buying and selling sidecars were triggered in succession, showing extreme price swings. On some trading days, bargain hunting poured in and drove a sharp rebound in a short period. On others, the KOSPI plunged in a single day and posted a record-level daily decline.

Some in the market also assess the move as a phase of heightened volatility caused by a short-term shock. Geopolitical shocks are sharply shaking market sentiment. Investors are moving quickly between risk aversion and bargain buying.

In the steep selloff, a selling sidecar was triggered and trading was temporarily halted. In the subsequent rebound, buying sidecars were triggered consecutively. Overheating and sharp declines alternated. The securities industry sees Middle East developments and moves in international oil prices as key variables that will influence the direction of the domestic stock market for the time being.

• KOSPI and KOSDAQ see repeated triggers of selling sidecars and circuit breakers • KOSPI edges up amid extreme swings; KOSDAQ rises in the 3 percent range • KOSPI opens lower; KOSDAQ triggers a buying sidecar again in a single day • Buying sidecars triggered in both markets as KOSPI and KOSDAQ surge • Selling sidecar triggered in KOSDAQ after KOSPI • KOSPI triggers selling sidecar for a second straight day; briefly breaks below 5,500 intraday • 'Black Tuesday' sends KOSPI down 7 percent, losing the 5,800 level • 'Black Wednesday' sees KOSPI plunge, but brokerages say: 'Short-term overheating has been resolved, there is no issue with an upward trend' • 'Iran shock' drives KOSPI down 12 percent, setting a record decline • Selling sidecar triggered in a sharp selloff in the KOSPI for the first time in a month • KOSPI settles at 6,000: where will March head amid Middle East bad news?

South Korea's financial sector is speeding up governance overhauls after recently wrapping up board composition and top management appointments. Major financial holding companies and banks are recommending outside director candidates ahead of annual general meetings. They are moving to strengthen board expertise and independence. KB Kookmin Bank recommended an outside director candidate who is an expert from the Korea Institute of Finance. Shinhan Financial Group also reshuffled its board by appointing new outside director candidates.

In the fintech sector, a view is emerging that the reappointment of Toss Bank CEO Eun-mi Lee (이은미) has secured management stability amid competition in digital finance.

The financial sector is also stepping up efforts to expand women’s leadership around International Women’s Day on March 8.

KB Financial Group held a conference for newly appointed female branch managers and deputy branch managers, moving to foster the next generation of female talent. Shinhan Financial Group also issued a message that it would strengthen diversity and inclusion within the organisation through a female talent programme. Woori Financial Group held an event to strengthen a cooperation network among female leaders. In the financial sector, strengthening women’s leadership is becoming a key management task amid ESG management and a broader push to expand organisational diversity.

• KB Kookmin Bank recommends Yeon Tae-hoon of the Korea Institute of Finance as a new outside director • Shinhan Financial recommends appointing 2 new outside director candidates • Toss Bank CEO Eun-mi Lee wins reappointment; nomination committee says 'leadership to drive sustained growth' • Woori Financial holds 'Women Leaders Networking Day' to strengthen diversity-based leadership • KB Financial holds a conference for newly appointed female branch managers and deputy branch managers to foster female talent • Shinhan Financial Chairman Ok-dong Jin says: 'Shinhan She-roes are talent that leads Shinhan... I hope they become independent leaders'

Competition in digital transformation centred on artificial intelligence is also continuing. Expanding the introduction of AI that performs actual work is changing the structure of financial services, according to an assessment. Woori Bank has presented a strategy to shift from its existing question-and-answer AI to a system of 'working AI' that performs tasks, pushing AI-based work innovation. This is interpreted as a strategy to expand beyond improving internal efficiency to automating customer services.

The digital finance race is also expanding into payments and content. Hana Financial Group is working with a global stablecoin company and a cryptocurrency platform to 추진 foreigner payment marketing, moving to build a digital-asset-based payment ecosystem. Technology adoption is also expanding in the asset management industry. KB Asset Management is introducing a generative AI-based announcer to innovate the production of financial content and the delivery of investment information. In the financial sector, a view is emerging that AI and digital technologies will be key factors determining competitiveness in financial services going forward.

• Woori Bank: 'Full-scale AI transformation... from asking-and-answering AI to working AI' • Hana Financial Group cooperates with Circle and Crypto.com to push foreigner payment marketing • KB Asset Management introduces a generative AI announcer

Other key moves in the finance and fintech sectors were also compiled.

KB Kookmin Bank cut the interest rate on new loans for its KB Saehuimang Holssi II product, a flagship public finance product, by 1 percentage point to ease interest burdens for financially vulnerable groups. It will also carry out special debt relief totalling 278.5 billion won for 12,433 financially vulnerable people.

Shinhan Financial Group completed financial arrangement for 140 billion won in project finance for the 'Gongdeok Station residential-commercial complex development project' in Mapo-gu, Seoul through the Shinhan PF Normalisation Fund, which it jointly capitalised with Korea Asset Management Corp. Shinhan Bank also launched a financial package tailored for military officers to support stable asset formation and ease financial burdens.

• KB Kookmin Bank cuts Saehuimang Holssi loan rates by 1 percentage point • KB Kookmin Bank supports recovery for financially vulnerable groups with 278.5 billion won in debt relief

• Shinhan Financial posts first result in urban housing supply through PF normalisation • Shinhan Bank launches a financial package tailored for military officers

Hana Bank signed a business agreement with Korea Southern Power for joint development of an offshore wind power project, accelerating productive finance for a major shift to renewable energy. It also signed a business agreement with Hanwha Ocean to secure 'ultra-gap competitiveness' in K-shipbuilding, supporting stronger competitiveness for shipbuilding, a national strategic industry.

Woori Bank will hold an event for customers who newly sign up for WooriWON Mobile in March. It also prepared an event for new subscribers to its retirement pension products. Separately, in an assessment by the Korea Exchange of investment banks that conducted listing underwriting work in 2025, Mirae Asset Securities was selected as the overall best IB.

• Hana Bank to jointly develop offshore wind projects with Korea Southern Power

• Hana Bank joins hands with Hanwha Ocean to secure 'ultra-gap competitiveness' in K-shipbuilding

• Woori Bank holds a 'telecom fee freedom declaration' event • Woori Bank prepares events for new subscribers to DC and IRP retirement pensions

• Mirae Asset Securities selected as KRX overall best IB for 2025

Toss has queried the Financial Supervisory Service on guidelines that include the application and allocation process for designated auditors, and has also begun reviewing a listing on South Korea's stock market. The domestic listing review is being conducted alongside preparations for a U.S. stock market listing.

PayPay, a SoftBank subsidiary, postponed its Nasdaq initial public offering roadshow following news of a Middle East war. It had planned to submit an amended registration statement for a Nasdaq listing, but decided to put the schedule on hold.

• Toss reviews a domestic stock market listing and queries the FSS on IPO procedures • PayPay postpones its Nasdaq listing roadshow due to fallout from the Iran situation