South Korean stocks crash over 12% on Middle East conflict fears

South Korean stocks experienced their biggest crash since 2008, plunging over 12% in a single day. The sharp drop was driven by fears that a conflict in the Middle East could trigger a global energy shock.

Leveraged bets by retail investors were wiped out, and the market volatility was so severe it triggered automatic trading halts. The South Korean won also fell sharply against the dollar.