South Korea's benchmark KOSPI index opened sharply lower on Monday, dropping approximately 3% at the start of trading.
The steep decline was driven by a broad sell-off in major semiconductor makers, as investors reacted to intensifying geopolitical risks in the Middle East.
The market move reflects growing anxiety over potential supply-chain disruptions stemming from the escalating conflict between the United States and Iran.
Fresh military strikes in the region have reignited fears that shipping routes and energy supplies could be impacted, prompting a risk-off sentiment across Asian equity markets.
Semiconductor stocks, which have been central to South Korea's market performance, faced particular pressure.
The sector's sensitivity to global trade flows and energy costs makes it vulnerable to geopolitical shocks, with traders pricing in the possibility of logistical bottlenecks or higher input costs.