South Korean stocks plunge over 7%, triggering sell-side circuit breaker

The South Korean stock market experienced a significant downturn on July 28, with the KOSPI index plummeting over 7% in early trading. This sharp decline triggered the activation of a sell-side "program trading suspension" (sidecar) on the KOSPI market at 9:06 AM. The Korea Exchange announced a five-minute halt to program trading.

The KOSPI's steep fall was attributed to the ripple effect of a sharp drop in U.S. semiconductor stocks overnight. By 9:23 AM, the KOSPI was trading at 6263.78, marking the first time it had fallen below the 6400-point level since April 23. The index opened at 6400.27, down 355.48 points or 5.26%, and continued to widen its losses.

Similarly, the KOSDAQ index also saw a significant drop, falling over 5% and trading below the 730-point level. A sell-side sidecar was also activated on the KOSDAQ market at 9:14 AM. The market experienced a brief period of volatility, with the sell-side sidecar on the KOSDAQ market being activated at 9:14:47 AM. The article notes that the KOSPI had previously fallen below 6400 points on April 23, highlighting the severity of the current market downturn. The market's sharp decline underscores the sensitivity of South Korean stocks to global economic trends, particularly in the technology sector.