South Korean stocks plunge 8%, KOSPI triggers circuit breaker

The South Korean stock market experienced a dramatic downturn on July 13, with the KOSPI index plummeting over 8% and triggering a Level 1 circuit breaker. Trading was halted for 20 minutes as the index fell to 6,880.97 points by 1:30 p.m., marking the first time it had dropped below 7,000 points since May 4.

This sharp decline underscores the extreme volatility currently gripping the market. The circuit breaker, designed to prevent panic selling, has been activated seven times this year. Previous activations occurred twice in March amid the outbreak of the U.S.-Israel-Iran war and four times in June as market fluctuations intensified.

The market's sharp fall is likely influenced by a confluence of global and domestic factors, though the article does not specify them. The activation of the circuit breaker signals a severe market shock, prompting a temporary suspension of trading to allow investors to reassess the situation.