The Korea Exchange (KRX) stated on Wednesday that the total number of temporary trading halts triggered for both buy-side and sell-side orders on the main board this year has reached its highest level since the 2008 global financial crisis, reflecting heightened market volatility.
According to statistics from the exchange, the main board has issued 20 "sidecar" temporary halt orders so far this year, only six fewer than the 26 recorded for the entirety of 2008.
A "sidecar" order is triggered when the KOSPI 200 futures index fluctuates by 5% or more and sustains that movement for at least one minute, leading to a five-minute pause in program trading.
To date this year, the Korea Exchange has issued 11 buy-side "sidecar" orders and 9 sell-side "sidecar" orders.
This also marks the first time since data collection began in 2002 that the exchange has triggered circuit breakers for six consecutive months.
Experts note that, considering the first half of the year is not yet complete, this figure could set a new annual record, surpassing the levels seen during the financial crisis.
The increased volatility in the South Korean stock market is driven by a surge in shares of companies like Samsung Electronics and SK Hynix, fueled by the global artificial intelligence (AI) boom, coupled with heightened market uncertainty due to conflicts in the Middle East.
Concurrently, the KRX triggered its market-wide circuit breaker twice in March, halting all trading for 20 minutes when the main index fell 8% below the previous session's level within one minute.
This also represents the first time since March 2020 that the exchange has activated the circuit breaker twice in a single month, a period marked by severe market turbulence due to the COVID-19 pandemic.
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