KOSPI, KOSDAQ plunge over 5%, triggering 'sell-side car' activations

South Korea's stock markets experienced a significant downturn on June 23, with both the KOSPI and KOSDAQ indices plummeting by over 5%. This sharp decline led to the activation of 'sell-side car' circuit breakers on both exchanges, halting trading temporarily to curb panic selling.

The KOSPI, after opening lower, initially rose but quickly reversed course, falling 5.16% to 8644.44 by midday. The KOSPI 200 futures index also dropped more than 5%, triggering the sell-side car at 11:40 AM. This marks the 27th time this year the circuit breaker has been activated on the main stock market, exceeding the 26 activations recorded during the entire 2008 financial crisis.

Major companies were not spared from the sell-off. Samsung Electronics, despite regaining its position as the top company by market capitalization, saw its stock price fall by 4.81% to 336,500 won. SK Hynix experienced an even steeper decline of 5.79%, trading at 2.75 million won. Other significant market players like Samsung Electro-Mechanics and Hyundai Motor also saw substantial drops of 7.99% and 8.61%, respectively.

Meanwhile, the KOSDAQ also suffered a severe blow, dropping 5.27% to 917.38. The KOSDAQ has been trading below the 1000-point mark since June 19 and has failed to rebound. The KOSDAQ 150 futures and the KOSDAQ 150 index also fell sharply, triggering a sell-side car activation at 11:37 AM. This is the 15th activation of the circuit breaker on the KOSDAQ this year.