Korean stocks plunged on May 16, with the KOSPI index falling 4.40% to 6964.13 as of 9:05 AM, breaking below the 7000 level and triggering a sell-side circuit breaker at 9:10:26 AM. Heavy selling by foreign investors (240 billion won) and institutions (518.4 billion won) in semiconductor stocks drove the decline, particularly in Samsung Electronics (down 5.72%) and SK Hynix (down 8.60%). The sharp drop occurred despite US markets closing higher the previous day, with the Dow Jones up 0.29%, S&P 500 up 0.38%, and Nasdaq up 0.62%, reflecting deteriorating investor sentiment in the domestic market.
KOSPI Opens Below 7000 and Activates Sell-Side Circuit Breaker
The KOSPI index opened at 6960.50 on May 16, down 323.91 points (4.45%) from the previous day, and continued to expand losses. At 9:05 AM, the index stood at 6964.13, down 320.28 points (4.40%). The Korea Exchange activated a sell-side circuit breaker at 9:10:26 AM after the KOSPI 200 futures index fell 60.92 points (5.22%) to 1104.40 compared to the previous trading day's close.
The KOSDAQ index also declined 16.58 points (2.00%) to 812.85 during the same period.
Foreign and Institutional Investors Sell 758.4 Billion Won
Foreign investors sold 240 billion won and institutional investors sold 518.4 billion won in net terms on the KOSPI market. Individual investors purchased 924.6 billion won in net terms, absorbing the selling pressure.
In the KOSDAQ market, foreign investors sold 24.2 billion won and institutions sold 3.5 billion won, while individuals bought 25.8 billion won in net terms.
Semiconductor Stocks Lead Market Decline Across Sectors
The electronics sector fell 6.80%, manufacturing dropped 5.59%, and medical precision equipment declined 2.63%. Construction fell 2.40% and distribution decreased 2.35%. Telecommunications rose 3.78%, textiles and apparel gained 0.85%, and food and tobacco increased 0.53%.
Among the top 10 KOSPI stocks by market capitalization, Samsung Electronics fell 5.72%, SK Hynix dropped 8.60%, SK Square declined 9.99%, Samsung Electro-Mechanics fell 8.49%, Hyundai Motor decreased 2.65%, Samsung Life dropped 1.48%, and Samsung C&T fell 3.81%. LG Energy Solution rose 3.73% and KB Financial gained 2.53%.
In the KOSDAQ market, all top 10 stocks by market cap declined except HLB (up 4.90%). Alteogen fell 2.25%, Jusung Engineering dropped 5.87%, Rainbow Robotics declined 4.07%, Wonik IPS fell 5.61%, LEENO Industrial decreased 2.95%, and PSK dropped 4.06%.
FAQ
What caused Korean stocks to fall below 7000 on May 16?
Korean stocks fell below 7000 on May 16 due to heavy selling by foreign investors (240 billion won) and institutional investors (518.4 billion won), particularly in semiconductor stocks like Samsung Electronics (down 5.72%) and SK Hynix (down 8.60%).
When did the sell-side circuit breaker activate on May 16?
The Korea Exchange activated a sell-side circuit breaker at 9:10:26 AM on May 16 when the KOSPI 200 futures index fell 5.22% to 1104.40 compared to the previous trading day's close.
