Circuit Breaker and Sidecar Activated Amid Stock Price Plunge (Update)

[Asia Economy Reporter Kum Boryeong] On the 13th, the KOSPI and KOSDAQ indices plunged sharply, causing a temporary halt in market trading.

The Korea Exchange announced that at 9:04:01 a.m. that day, trading on the KOSDAQ market was temporarily suspended (Level 1 circuit breaker activated) due to a sharp decline.

The Exchange explained, "The KOSDAQ index fell more than 8% compared to the previous day's closing price and sustained this for one minute, resulting in a 20-minute suspension of trading on the KOSDAQ market."

The Level 2 circuit breaker is triggered if the KOSDAQ index falls more than 15% compared to the previous day's closing price and declines an additional 1% or more from the Level 1 trigger index, sustaining this for one minute, which leads to a 20-minute suspension of trading on the KOSDAQ market.

At 9:04 a.m., the KOSDAQ index was 516.20, down 47.29 points (8.39%) from the previous trading day.

The Level 1 circuit breaker was lifted at 9:24:01 a.m.

Meanwhile, on the same day, a sidecar was activated on the KOSPI market at 9:06:02 a.m., temporarily suspending program sell orders.

This was due to futures prices falling more than 5% for over one minute. As a result, program sell orders on the KOSPI market were suspended for five minutes.

On the KOSPI market, a sell-side sidecar had also been activated the previous day, the 12th.

This content was produced with the assistance of AI translation services.