Korean Stocks Plunge 7% on KOSPI, 4% on KOSDAQ Amid Sell Sidecar Triggers

Korean stock markets recorded sharp losses on the morning of the 16th, with the KOSPI index down 7.06% to 6770.2 and the KOSDAQ index down 4.71% to 790.36 as of 11:20 AM. Both markets triggered sell sidecars during the session, reflecting heightened volatility. The KOSPI opened at 6960.50, down 323.91 points (4.45%) from the previous trading day, before extending losses.

KOSPI and KOSDAQ Record 7% and 4% Declines

As of 11:20 AM on the 16th, the KOSPI index fell 514.21 points (7.06%) to 6770.2 from the previous trading day. The index opened at 6960.50, down 323.91 points (4.45%), and continued to decline throughout the morning session. The KOSDAQ index dropped 39.07 points (4.71%) to 790.36 at the same time, after opening at 813.32, down 16.11 points (1.94%) from the previous day.

Individual Investors Net Buy ₩2.38 Trillion on KOSPI

On the securities market, individual investors net purchased ₩2.38 trillion, while foreigners and institutions net sold ₩1.15 trillion and ₩1.27 trillion respectively. In the KOSDAQ market, individuals net bought ₩283.5 billion, while foreigners and institutions net sold ₩229.7 billion and ₩58 billion respectively.

SK Hynix and SK Square Lead Declines Among Top Stocks

Top market capitalization stocks on the securities market declined across the board. SK Hynix fell 10% and SK Square dropped 11%. Other major stocks including Samsung Electronics, Samsung Electro-Mechanics, Hyundai Motor, LG Energy Solution, Samsung Life Insurance, KB Financial, and Samsung Biologics also declined. On the KOSDAQ market, Alteogen, EcoPro BM, EcoPro, Jusung Engineering, Rainbow Robotics, Wonik IPS, Kolon TissueGene, PSK, and Lino Industrial all fell, while HLB alone rose 6%.

Exchange Triggers Sell Sidecars on Both Markets

The Korea Exchange activated sell sidecars on both markets during the morning session on the 16th. The sidecar was triggered on the securities market at 9:10 AM, followed by the KOSDAQ market at 10:20 AM, one hour and ten minutes later. This occurred one day after buy sidecars were triggered on both markets.

FAQ

What happened to Korean stocks on the morning of the 16th?
The KOSPI index fell 7.06% to 6770.2 and the KOSDAQ index dropped 4.71% to 790.36 as of 11:20 AM on the 16th. Both markets triggered sell sidecars during the session.

Which stocks experienced the largest declines?
SK Hynix fell 10% and SK Square dropped 11%, leading declines among top market capitalization stocks on the securities market. Most KOSDAQ top stocks also fell, except HLB which rose 6%.

When were the sell sidecars triggered?
The Korea Exchange activated a sell sidecar on the securities market at 9:10 AM on the 16th, and on the KOSDAQ market at 10:20 AM the same day.