Korean Stocks Plunge in Early Trading, KRX Triggers Sidecar Market Halt

Deep News10-15 08:30

South Korea's stock market tumbled sharply in early trading on Thursday, prompting the Korea Exchange (KRX) to activate the sidecar mechanism for its benchmark index, the KOSPI.

According to the Korea Exchange, program selling on KOSPI constituent stocks was suspended at 9:08 a.m. local time for a duration of five minutes.

The KOSPI opened 5.59% lower and, as of 9:11 a.m. local time, had fallen 303.39 points (a decline of 5.05%) to 5,705.42.

Amid persistent doubts about artificial intelligence (AI)-related trades and renewed concerns over the pace of U.S. inflation, investors dumped semiconductor stocks including Samsung Electronics and SK Hynix.

The sell-side sidecar mechanism is triggered when KOSPI 200 index futures decline by 5% or more and the drop persists for at least one minute.

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