▲ This AFP photo shows smoke rising from the site of an Israeli air strike that targeted the office of the Hezbollah-affiliated Al-Manar TV station in Beirut's southern suburb of Haret Hreik on March 3, 2026. (PHOTO NOT FOR SALE) (Yonhap)

(LEAD) BOK-Iran situation

(LEAD) S. Korean authorities take emergency response mode amid market volatility over Iran crisis

(ATTN: RECASTS headline with latest; ADDS latest info in last 4 paras)

SEOUL, March 3 (Yonhap) -- The Bank of Korea (BOK) held a special task force meeting Tuesday to assess the impact of an ongoing Middle East conflict on financial markets and discuss response measures against possible market volatility.

During the meeting presided over by BOK Gov. Rhee Chang-yong, officials discussed the impact of the joint attack by the United States and Israel on Iran over the weekend on domestic and global markets and the economy, with a focus on response plans under various scenarios, according to the central bank.

"We will closely assess market developments by enacting an around-the-clock monitoring system in cooperation with our overseas offices and stand ready to take appropriate action if needed," the BOK said in a release.

On Saturday, the U.S. and Israel launched a large-scale joint military operation against Iran and killed Iran's Supreme Leader Ayatollah Ali Khamenei.

The conflict has widened across the region, as Israeli forces struck targets in Lebanon after Hezbollah launched attacks on Israel, while Iran continued retaliatory strikes against Gulf states that host U.S. military bases, according to foreign media reports.

The benchmark Korea Composite Stock Price Index (KOSPI) plunged 452.22 points, or 7.24 percent, to 5,791.91 on Tuesday amid hefty foreign selling, marking the largest single-day drop in terms of points in history.

The local currency fell to a one-month low of 1,466.1 per dollar.

Amid rising volatility, the Financial Supervisory Service (FSS) activated an emergency team to monitor markets and implement policy measures, while operating a hotline connecting overseas offices and local financial subsidiaries, according to its officials.

The agency also expanded reporting channels for small and mid-sized companies and households affected by market instability, and strengthened internal safeguards against cyberattacks and market manipulation, they added.

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