The airstrikes conducted by the US and Israel on Iran have escalated tensions in the Middle East, causing a severe backlash in South Korea's financial markets immediately following the attacks. The Kospi index experienced its largest recorded drop, plummeting by 452.22 points. Additionally, the Korean won's exchange rate against the dollar spiked significantly, reflecting the increased volatility and risk perception in response to international events. Major indices across Asia and other countries have also experienced downturns, highlighting a widespread reaction to the crisis.

A crucial concern arising from the potential prolongation of military engagements in the region is the impact on South Korea's real economy. US President Donald Trump has indicated an unyielding commitment to offensive operations, exacerbating fears that conflict could expand across the Middle East. Iranian responses, threatening actions against military bases in Saudi Arabia and potential blockades in critical maritime routes like the Strait of Hormuz, reinforce the likelihood of a drawn-out conflict that could destabilize the entire region and trigger wider economic repercussions.

The ramifications of sustained military conflict in the Middle East for the global economy are difficult to quantify but are undoubtedly significant. South Korea's heavy reliance on energy imports from this region (70% of crude oil and 20% of liquefied natural gas) makes it particularly vulnerable to geopolitical upheaval. Concerns over the supply chain and rising energy prices could exacerbate domestic inflation, increase corporate costs, and negatively impact consumption and investment, all of which demand proactive measures by the government to mitigate potential economic fallout from escalating international tensions.