KOSDAQ Stocks Fall Below 700 for First Time Since April 16 of Previous Year

The KOSDAQ index fell below 700 on May 28, dropping to 700.36 (down 64.50 points or 8.43%) as of 2:51 PM, marking the first time the index breached this level since April 16 of the previous year, approximately 1 year and 3 months prior. The decline was driven by spillover effects from a sharp drop in US semiconductor stocks and heavy institutional selling totaling 1,252 billion won. The broader market rout triggered a circuit breaker earlier in the session, temporarily halting trading, though the index failed to recover after resumption and continued sliding through the afternoon.

Circuit Breaker Triggered as KOSDAQ Opens Sharply Lower

The KOSDAQ index opened at 742.13 on May 28 and immediately widened losses from the opening bell. The rapid decline triggered a circuit breaker mechanism that temporarily suspended trading. According to Yonhap Infomax New Stock Composite (screen number 3536), the index failed to rebound after trading resumed and broke below the 700 threshold at approximately 2:39 PM. The index has since fluctuated around the 700 level.

Institutional Investors Lead Selling Pressure with 1,252 Billion Won Net Outflow

Institutional investors net sold 1,252 billion won worth of KOSDAQ stocks on May 28, driving the index decline. Foreign investors reversed their earlier selling stance and turned net buyers with 23.4 billion won in purchases. Individual investors absorbed the selling pressure by net buying 1,000 billion won worth of shares throughout the session.

Top KOSDAQ Stocks Post Double-Digit Declines

Market-cap leaders across the KOSDAQ experienced steep losses. Alteogen, a bellwether stock, traded at 290,000 won, down 7.05% from the previous session. Ecopro fell 10.05% while Ecopro BM declined 8.87%. Rainbow Robotics dropped 10.43%, Jusung Engineering tumbled 13.48%, Leeno Industrial fell 12.03%, and Wonik IPS plunged 15.19%. Approximately 1,592 stocks declined on the KOSDAQ on May 28, while only 95 stocks advanced.

FAQ

What caused the KOSDAQ index to fall below 700 on May 28?

The KOSDAQ index fell below 700 on May 28 due to spillover effects from a sharp drop in US semiconductor stocks and heavy institutional selling totaling 1,252 billion won. The index dropped to 700.36 (down 64.50 points or 8.43%) as of 2:51 PM.

When was the last time the KOSDAQ index traded below 700 before May 28?

The KOSDAQ index last traded below 700 on April 16 of the previous year, approximately 1 year and 3 months before the May 28 decline. The index broke below this threshold at approximately 2:39 PM on May 28 after a circuit breaker suspension failed to halt the selling pressure.