The South Korean exchange activated a circuit breaker mechanism on Wednesday morning, halting programmatic buy orders for the benchmark KOSPI index for five minutes. This action followed a significant surge in the index, driven by gains in technology stocks.
The exchange initiated the mechanism shortly after the market opened, at 9:06 AM local time.
The South Korean stock market opened sharply higher, with the KOSPI index starting at 7,052.09 points, up 4.5%. It then climbed to 7,153.42 points by 9:11 AM local time, representing a gain of 6.01%.
The circuit breaker for buy orders is triggered when the KOSPI 200 futures index rises by 5% or more and sustains that level for at least one minute.
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