South Korean Markets Trigger Sell-Side Circuit Breakers Amid Sharp Decline

South Korea's stock markets were hit by a severe sell-off today, forcing the activation of 'sell-side circuit breakers' on both the KOSPI and KOSDAQ indices. This measure temporarily halts program trading to prevent excessive volatility during sharp market declines.

The KOSDAQ market was the first to trigger the circuit breaker around 11:37 AM. The decision came as the KOSDAQ150 futures price dropped by 6.01% and the KOSDAQ150 index fell by 5.33% from the previous day's closing prices. The circuit breaker for the KOSDAQ is activated when futures fall over 6% and the index drops over 3% simultaneously for one minute.

Shortly after, at approximately 11:40 AM, the KOSPI market also activated its sell-side circuit breaker. This occurred as the KOSPI200 futures index declined by 5.12% from its previous close. This is the second time this month that both markets have seen such a measure invoked, highlighting significant investor apprehension and market instability.