KOSPI plunges over 5%, triggering trading suspension

South Korea's main stock market index, the KOSPI, plunged sharply on Monday morning, triggering a "sell-side carnet" trading suspension due to the rapid decline.

The Korea Exchange halted program sell orders for five minutes starting at 10:23 AM, as the KOSPI 200 futures index dropped more than 5.12% to 1227.32 points. A sell-side carnet is activated when the KOSPI 200 futures index falls by 5% or more for one minute.

At the time of the suspension, the KOSPI itself had fallen over 5% from its opening, breaching the 8,000-point level and trading at 7,597.93. The index had opened lower at 7,919.20, down 1.64% from the previous day, and continued to extend its losses.

The market downturn affected major companies, with Samsung Electronics experiencing a decline of over 6% despite announcing record quarterly earnings. SK Hynix also saw a significant drop of over 5% in its share price.

The broad market weakness reflects investor concerns and potential sell-offs impacting the South Korean stock market.