Circuit Breaker Halts KOSPI Trading for 20 Minutes Amid Plunge... Sell-Side Sidecar Triggered on KOSDAQ

KOSPI Plunges Over 8 Percent
Sell-Side Sidecar and Circuit Breaker Triggered
KOSDAQ Also Plummets
Sell-Side Sidecar Activated

On March 9, amid the spread of Middle East-driven geopolitical risks, the Korean stock market plunged, triggering consecutive sidecar (temporary halt of program trading orders) and circuit breaker (20-minute suspension of stock trading in case of drastic price movements) measures. This marks the first time a circuit breaker has been triggered on the KOSPI in three trading days since March 4.

On the 9th, employees were monitoring the stock market and exchange rates in the dealing room at Hana Bank headquarters in Seoul. On that day, the KOSPI opened at 5,265.37, down 319.50 points (5.72%) from the previous trading day, and the KOSDAQ opened at 1,096.48, down 58.19 points (5.04%). Photo by Jo Yongjun

As of 11:23 a.m. on the same day, the KOSPI index was trading at 5,145.07, down 439.8 points (7.87%) from the previous trading day. The KOSPI had opened at 5,265.37, a decrease of 319.5 points (5.72%), and the decline has since accelerated. Foreign investors have sold 2.1363 trillion won, and institutional investors have sold 1.3133 trillion won. Individual investors are net buying approximately 3.377 trillion won.

The Korea Exchange triggered a KOSPI sell-sidecar at around 9:06 a.m. on the same day. A sell-sidecar is activated when the KOSPI 200 futures index drops by 5% or more and remains at that level for at least one minute. However, the decline widened further, and the index fell below the 5,100 level during the session. Around 10:32 a.m., a circuit breaker notice was issued for the KOSPI. This measure is triggered when the KOSPI index plunges by 8% or more from the previous trading day and sustains that level for at least one minute.

At the same time, the KOSDAQ was trading at 1,080.71, down 73.96 points (6.41%) from the previous trading day. The KOSDAQ had opened at 1,096.48, down 58.19 points (5.04%), and its losses also deepened. Foreign investors are net buyers of 365.8 billion won, and institutional investors are net buyers of 69.4 billion won, while individual investors are net sellers of 322.3 billion won. Due to fluctuations in the KOSPI 150 futures price and the spot index, a sell-sidecar was also triggered on the KOSDAQ market at around 10:31 a.m. that day.

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