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  • KOSPI Plummets 8% Amid Warnings of Leverage Risks
    KOSPI Plummets 8% Amid Warnings of Leverage Risks The South Korean stock market experienced a significant drop, falling over 8% during trading and triggering the sixth circuit breaker of the year. Amid extreme volatility, warnings of 'risk' have emerged from international sources.According to the Korea Exchange, the KOSPI closed at 7,656.31, down 395.02 points (4.91%) from the previous trading day. After a morning circuit breaker, the index fell to as low as 7,389.22 in the afternoon, prompting the circuit breaker to activate. This year, circuit breakers have been triggered 32 times (16 for selling and 16 for buying), surpassing the previous record of 26 during the first half of the 2008 global financial crisis. This marks the sixth circuit breaker activation this year, with half of the 12 instances in the history of the securities market occurring in 2026.Despite Samsung Electronics announcing record earnings for the second quarter, the market reacted negatively, with the company's stock dropping more than 7%. SK Hynix also fell over 6%. Analysts noted that the market's expectations for an operating profit of 100 trillion won were not met, leading to a 'sell the news' phenomenon as investors took profits.Lee Byung-geon, head of research at DB Securities, stated, "The sharp decline in the stock market is ultimately influenced by the drop in semiconductor stocks like Samsung Electronics and SK Hynix. While Samsung's second-quarter results were not poor, it seems the market had overly high expectations for an earnings surprise."Concerns about the South Korean stock market have also been voiced internationally. Morgan Stanley expressed caution regarding semiconductor stocks, noting in a recent report that investors are shifting their focus to hyperscalers like Amazon, Microsoft, and Meta Platforms, which is dampening the upward momentum of semiconductor stocks. While the investment appeal of big tech companies, central to the AI ecosystem, remains high, the report suggested that the semiconductor stocks that have risen the most this year may struggle to reach new highs in the near term.Additionally, single-stock leverage products that double the exposure to Samsung Electronics and SK Hynix have been identified as amplifying market volatility. The Wall Street Journal recently assessed the South Korean stock market as being at risk of becoming a 'Squid Game,' highlighting that the proliferation of single-stock leverage products is exacerbating concentration and price distortion in specific stocks. Shin Chung-ho, head of research at LS Securities, remarked, "Concerns are growing that the profitability of memory chip companies may be peaking, and the recent influx of leverage products in the domestic market has further increased volatility. We expect this volatile market to continue until we can confirm whether capital expenditures (CAPEX) are maintained in the upcoming earnings reports from hyperscalers and big tech at the end of July."As concerns about single-stock leverage products contributing to market volatility mount, financial authorities are expected to announce measures soon. While there are discussions about the possibility of discontinuing these products or halting new launches, the current focus appears to be on strengthening investor protection measures. Potential solutions include enhancing investor education and raising minimum deposit requirements. However, specific plans have not yet been finalized, and it may take time before any improvements are implemented. 2026-07-07 16:28:00
  • AI Investment Trends Differ in South Korea, Japan, and China
    AI Investment Trends Differ in South Korea, Japan, and China The surge in artificial intelligence (AI) is reshaping investment landscapes across Asian stock markets, with each country benefiting from different sectors. In the first half of this year, South Korea led with high-bandwidth memory (HBM), Japan with semiconductor equipment, and China with AI technology stocks.According to data from exchanges in South Korea, Japan, and China, SK Hynix, which dominates the HBM market, saw its stock price soar from 677,000 won at the beginning of the year to 2,343,000 won on July 6, marking a 246.1% increase. Meanwhile, Japan's Advantest, a semiconductor inspection equipment firm, rose by 39.6%, and China's Cambricon, an AI chip company, increased by 46.8%. In contrast, major Chinese platform companies Alibaba and Tencent experienced declines of 35.6% and 27.4%, respectively, highlighting a mixed performance within the AI sector.The stock market trends also varied by country. The KOSPI index in South Korea rose by 86.8%, while Japan's Nikkei 225 increased by 34.5%, driven by strong performances in AI semiconductors and supply chain companies. Conversely, China's CSI 300 index only gained 2.6%, and the Shanghai Composite index rose by just 0.4%. Although AI-related stocks showed strength, the overall market in China did not experience a similar uplift.In South Korea, the focus on HBM and memory semiconductors, led by SK Hynix and Samsung Electronics, has directly benefited from increased AI investments. In Japan, the semiconductor equipment and machinery sectors have thrived due to expanded investments in AI and data centers. KB Securities noted that the outlook for Japan's machinery sector is improving due to increased AI-related capital expenditures.In contrast, analysts suggest that the focus of AI investment in China is shifting from platform companies to domestic technology stocks. Shinhan Investment Corp. recently stated in its 'Q3 China Stock Market Strategy' report that Hong Kong tech stocks are seen as payers in AI investment, while domestic tech stocks on the STAR Market and ChiNext are viewed as receivers benefiting from the AI hardware supply chain. This indicates that the direct benefits of expanded AI investments are concentrating on domestic semiconductor and AI hardware companies.Seo Sang-young, a researcher at Mirae Asset Securities, commented, "Recently, global investment banks like Morgan Stanley and Goldman Sachs have warned of a slowdown in earnings momentum for the semiconductor sector, suggesting that expectations may be too high and the risk-reward ratio is not attractive. This has led to profit-taking by market participants who have felt pressure from the recent surge in stock prices." He added, "In the short term, increased volatility is inevitable, but considering the expansion of data center investments and expectations for TSMC's performance, the likelihood of a significant market contraction is limited."* This article has been translated by AI. 2026-07-07 16:28:00
  • Regional Construction Firms Move to Seoul While Large Companies Relocate Out of City
    Regional Construction Firms Move to Seoul While Large Companies Relocate Out of City The trend of construction companies relocating their headquarters is diverging. Jungheung Construction and Jungheung Tokken have moved to Seoul amid a downturn in the regional housing market, while larger construction firms are leaving the city center for cost efficiency and development opportunities.According to the construction industry on the 8th, Jungheung Construction and Jungheung Tokken, which grew from their base in Gwangju, opened their Seoul office in Dangsan-dong, Yeongdeungpo-gu, in June and have begun full operations. About 120 employees work at the Seoul office, while only essential personnel for public relations and customer service remain at the Gwangju headquarters.This move is seen as a strategic decision to shift the business focus from a weakened regional market to Seoul and the metropolitan area, aiming to secure new growth engines through urban redevelopment and public projects.A Jungheung Construction official stated, "As the regional housing market downturn has prolonged, we opened the Seoul office to seek new business opportunities in the capital and metropolitan area. We are also considering various collaborations, including urban redevelopment projects and joint ventures with Daewoo Engineering & Construction."Jungheung Tokken is similarly strengthening its focus on the metropolitan area. A company representative noted, "Due to the prolonged downturn in the regional housing market and a decrease in public land supply, it has become challenging to carry out our own projects, prompting us to enhance our organizational structure centered on the metropolitan area. We plan to expand urban redevelopment projects and public bidding initiatives while collaborating with Daewoo Engineering & Construction to create synergies."Jungheung's move to Seoul is not an isolated case. Major construction firms based in Honam, such as Hoban Construction, Umi Construction, and Kumho Construction, have already relocated their headquarters to Seoul, while Jeil Construction maintains its Gwangju headquarters while operating a branch in Seoul.The downturn in the regional housing market is evident in various indicators. According to the Ministry of Land, Infrastructure and Transport, as of April this year, the number of unsold homes nationwide was 17,298 in the metropolitan area, compared to 47,881 in the regions, nearly three times as many. Meanwhile, new supply is increasingly concentrated in the metropolitan area.Data provided by Real Estate 114 indicates that the share of metropolitan area housing supply rose from 45.7% in 2022 to 59.5% last year, and is expected to remain at 58.5% this year. In contrast, the supply of housing in key regions such as Chungbuk, Jeonbuk, and Daegu has decreased to less than half during the same period.In contrast, the relocations of large construction firms have a different character. Already structured around the metropolitan area, these firms are moving out of the city center to development sites or new office buildings.DL E&C relocated its headquarters from the D Tower in Gwanghwamun to One Grove in Magok, Gangseo-gu, last year. SK Eco Plant plans to move its headquarters and its subsidiary, SK Eco Engineering, to a complex center in Yangpyeong-dong, Yeongdeungpo-gu, next year, establishing a consolidated office. IPARK Hyundai Industrial Development is also set to move its Yongsan headquarters to the Gwangwoon University station development site. However, Hanwha's construction division stated there are "no plans" for relocation to the northern station area of Seoul Station.The relocations of these construction firms are interpreted as strategies to enhance operational efficiency and strengthen synergies with their own development projects rather than merely expanding into the metropolitan area. By establishing headquarters at development sites or creating consolidated offices, they aim to improve project management efficiency.Lee Eun-hyung, a researcher at the Korea Construction Policy Institute, explained, "For regional construction firms, expanding into the metropolitan area is a natural business decision, as growth is limited within local markets. In contrast, large construction firms are moving their headquarters from the city center to the suburbs, considering factors such as rent, space efficiency, and connections to their own development projects." 2026-07-07 16:28:00
  • Korean Agricultural Satellite Launches Successfully Aboard SpaceX Falcon 9
    Korean Agricultural Satellite Launches Successfully Aboard SpaceX Falcon 9 The next-generation medium satellite for agriculture and forestry management, known as Agricultural Satellite 4 (Chajung 4), has been launched into space.According to the Korea Aerospace Administration, Chajung 4 successfully lifted off aboard SpaceX's Falcon 9 rocket from Vandenberg Space Force Base in California at 4:12 p.m. KST (12:12 a.m. local time) on July 7.Chajung 4 is expected to separate from the rocket approximately 2 hours and 30 minutes after launch, around 6:42 p.m. KST. The first communication with the Svalbard ground station in Norway is scheduled for 7:03 p.m., about 21 minutes after separation.Chajung 4 is a 500-kilogram standard platform satellite equipped with a wide-area observation camera developed using domestic technology. It will capture images of the entire country every three days to assist in agricultural and forestry management and monitor changes in forest conditions. 2026-07-07 16:24:00
  • Japan to Base Agricultural Subsidies on Crop Yields Instead of Area
    Japan to Base Agricultural Subsidies on Crop Yields Instead of Area Japan's government will change the criteria for subsidies given to farmers who grow crops like wheat and soybeans instead of rice in paddy fields, shifting from area cultivated to actual yield. Previously, farmers received a fixed amount based on the area planted, regardless of yield. Under the new system, farmers producing higher yields from the same area will receive more subsidies. This marks a shift towards a performance-based approach in agricultural support, coinciding with a turning point in Japan's production adjustment policy aimed at curbing rice overproduction.The Nihon Keizai Shimbun reported on July 7 that starting in the 2027 fiscal year, the government plans to revise the 'Direct Payment for Paddy Field Utilization' program to provide differentiated support based on crop yields rather than cultivated area. The basic economic and fiscal policy framework released by the government last month also includes plans to support farmers based on yield, regardless of whether they are growing rice or other crops, with the goal of enhancing agricultural productivity.The existing subsidy system was introduced in 2013 to prevent oversupply due to declining rice consumption. Farmers who grow wheat, soybeans, or rice for feed and processing receive subsidies from the government. The aim is to reduce the area planted with rice while maintaining income for farmers who switch to other crops.Under the current system, farmers receive 35,000 yen (approximately $330) for cultivating wheat or soybeans on 10 ares (0.1 hectares) of paddy land, and 20,000 yen for growing rice used in snacks or miso. Farmers receive the same subsidy regardless of actual yield as long as they meet a minimum shipment requirement. This has allowed farmers to secure subsidies without significantly increasing their yields, as they weigh the subsidy amount against rice market prices when deciding what to plant each year.According to Japan's Ministry of Agriculture, Forestry and Fisheries, the area planted with rice for consumption last year was 1.367 million hectares, while the area for other crops like wheat and soybeans was 388,000 hectares. In terms of area, rice production capacity has been suppressed to about 80%. However, the current structure, which bases subsidies on area, has allowed farmers to secure funding without needing to significantly increase yields, the Nikkei noted.Once the new system is implemented, farmers who improve crop varieties or cultivation methods to increase yields will receive higher subsidies. Conversely, those with lower yields will see their payments decrease. There is also a proposal to eliminate subsidies entirely for those whose yields fall significantly below average. The support will extend beyond paddy fields to include upland fields. Currently, subsidies for rice grown for feed are already based on yield, and in this case, farmers typically choose high-yield varieties. The new system will also enhance support for practices aimed at increasing productivity, such as harvesting rice for food service and then cultivating new shoots from the remaining plants for a second harvest.Impact of Financial StrainThe primary motivation for this reform is the tight financial situation. The Nikkei reported that the Ministry of Agriculture, Forestry and Fisheries plans to encourage rationalization in agriculture by emphasizing performance in the new system, as it is difficult to verify the effectiveness of financial inputs under the current structure, which provides the same amount regardless of yield. With an aging population of farmers, there is also a need to maintain domestic supply with fewer people.Furthermore, the Japanese government appears to be aiming to change the very nature of subsidies with this reform. While the existing system compensated farmers for reducing rice production by planting other crops, the new system will focus on rewarding the successful cultivation of wheat and soybeans. Kunio Nishikawa, a professor of agricultural economics at Nihon University, told the Nikkei, "The change in the system will effectively eliminate the role of subsidies as a means of adjusting rice production."Farmers are concerned that uncontrollable factors, such as weather, will directly impact the amount of subsidies they receive. A farmer cultivating 30 hectares in Omihachiman City, Shiga Prefecture, expressed to the Nikkei, "Crops are most affected by the weather. Even if we work hard, we cannot increase production if the weather does not cooperate." A farmer in his 30s from Tsuruoka City, Yamagata Prefecture, added, "If the area is the standard, it is easy to plan production, but if yield becomes the standard, it makes management decisions difficult due to uncertainty about what will happen."The new system is still in its early stages, with specific payment rates and calculation methods for each crop yet to be determined. The Ministry of Agriculture, Forestry and Fisheries plans to finalize the details by the end of this year. However, directly linking yield to subsidies could lead to income disparities among farmers due to poor harvests or regional differences. Katsumi Arahatta, a professor of agricultural economics at Nihon Kokusai Gakuin University, emphasized to the Nikkei, "It is important to create a balanced system to prevent unfairness, considering not only the level of payments but also the varying production environments for each farmer."* This article has been translated by AI. 2026-07-07 16:24:00
  • Sejeong Group Contributes 400 Million Won to Community Support in First Half of 2026
    Sejeong Group Contributes 400 Million Won to Community Support in First Half of 2026 Sejeong Group announced on July 7 that it conducted six social contribution activities focused on local communities in the first half of 2026, with a total support amounting to 400 million won.According to Sejeong Group, its flagship social contribution initiative, the Sejeong Sharing Foundation's 'Love House Repair' program, is now in its 17th year. Through this program, the organization has improved the living conditions of 330 households to date, and it has also been running a project to upgrade aging slate roofs for eight years. This year, it plans to support the improvement of living conditions for about 20 more households.This year, the company has strengthened its support for vulnerable groups, including the elderly, women, and people with disabilities. Sejeong Group collaborated with the Geumjeong District Community Self-Support Center to provide hygiene management and clothing support for participants in self-sufficiency programs. Additionally, it has launched a training program for cultural and arts instructors to assist economically disadvantaged women and those who have experienced career interruptions.The company continued its close-to-home support initiatives. Through its 'Neighbor Assistance Goods Delivery' program, Sejeong Group provided essential items to approximately 300 vulnerable households, helping to stabilize the lives of neighbors in welfare blind spots within the community.In the second half of the year, Sejeong Group plans to expand its social contribution activities across housing, education, and welfare. Notably, it aims to support the improvement of working conditions for disabled job seekers and entrepreneurs through the establishment of the nation’s first shared office for people with disabilities.New initiatives are also in the works. Sejeong Group will collaborate with Dong-A University Hospital and the Local Child Center Support Group to implement a 'Gardasil Vaccination Support Project' for children from low-income families to prevent cervical cancer.A representative from the Sejeong Sharing Foundation stated, "We will continue our sincere sharing activities based on the philosophy that 'sharing is not a choice but a responsibility,' and we will fulfill our social responsibilities to contribute to the independence and quality of life of more neighbors."Meanwhile, Sejeong Group is also accelerating improvements in its organizational culture. Starting this year, it has integrated the positions of manager and above into a single 'professional' category, aiming to reduce the hierarchical structure and enhance horizontal communication within the organization.* This article has been translated by AI. 2026-07-07 16:24:00
  • Volunteers serve Samgyetang to help vulnerable residents beat summer heat
    Volunteers serve Samgyetang to help vulnerable residents beat summer heat SEOUL, July 7 (AJP) - Workers and volunteers from the Korean Red Cross shared a traditional meal with underprivileged residents at an event in Seoul on Tuesday. The event coincided with Chobok, the first of the three summer days along with Jungbok and Malbok, which come every 10 days apart and are collectively called Sambok, when Koreans traditionally eat samgyetang or chicken soup with ginseng, to beat the summer heat. More than 50 employees and volunteers from the charity organization prepared samgyetang and distributed it to some 150 households in need in cooperation with non-ferrous metal smelting company Korea Zinc. Korea Zinc also donated 16 million won (about US$10,000) to provide summer blankets and pillows to 430 underprivileged households in northwestern Seoul. The Korean Red Cross has held the annual event every summer to help vulnerable residents stay healthy during the hot season. 2026-07-07 16:23:32
  • Koreas ruling party dominance wanes as young voters lose faith
    Korea's ruling party dominance wanes as young voters lose faith SEOUL, July 07 (AJP) - On June 16, a woman in her 20s with an American flag wrapped around her waist chained herself to a tape-bound gate at Seoul's Olympic Handball Gymnasium, preventing police from reopening the venue after it had been sealed over a ballot-shortage controversy in the June 3 local elections. Some protesters hailed her as the "Joan of Arc of Olympic Park." The scene is no longer unusual. Increasingly, it is young people—not the elderly—taking to the streets against a liberal government. As President Lee Jae Myung's approval has slipped since the June election, dissatisfaction among younger voters has become increasingly vocal, fueled by record youth unemployment, soaring housing costs and a growing sense that neither major party understands their lives. The Democratic Party, which once counted younger voters among its most reliable supporters, is struggling to explain the erosion. Yet many young voters insist they are neither liberal nor conservative. What increasingly shapes their choices is whether they believe policies are fair. A 22-year-old woman from Busan studying in Seoul said she no longer supports the Democratic Party despite having traveled across the country to join rallies calling for former President Yoon Suk Yeol's impeachment. "The DP cannot put forward women's issues because it wants to win votes from men in their 20s and 30s," she said. She argued the party has shown little interest in women's rights despite rising violence against women and criticized the Lee administration's plan to rename the Ministry of Gender Equality and Family while discussing what it describes as reverse discrimination against young men. Others say the problem goes beyond gender. "There are hardly any young politicians who can truly represent young people," said a 28-year-old nurse in Seoul's Songpa-gu. "In the next general and presidential elections, I'll vote for whichever party recruits young politicians who genuinely represent the lives of young people and women." For many, however, the defining issue is economic opportunity. "Ultimately, it's real estate," said Kim Min-chul, a 27-year-old graduate student in Seoul. "Since the Moon Jae-in administration, housing prices have surged, widening the wealth gap. For people just starting their careers, buying a home in Seoul has become almost impossible." A 32-year-old office worker in Seoul's Jongno-gu also accused the ruling party of widening inequality while pursuing populist policies. "My college friend's father has terminal cancer. An expensive treatment exists, but it isn't covered by national health insurance, so he had to give up treatment," he said. "Yet the government talks about covering hair-loss treatment targeted at younger people. That looks more like vote calculation than caring about people's lives." The Lee administration has responded by placing youth policy at the center of its agenda. The presidential office is preparing to launch a Youth Fellowship, a consultative body that will allow young people to participate directly in policymaking. Lee has repeatedly instructed ministries to prioritize youth in long-term fiscal planning, arguing that younger generations have become the most excluded from opportunities to accumulate wealth. The government has also pledged to expand internships, work-experience programs, student housing and affordable housing. The renewed emphasis reflects growing concern within the ruling camp that South Korea's age-based political alignment has changed fundamentally. For years, younger voters overwhelmingly supported liberal candidates while older generations leaned conservative. That pattern began unraveling during former President Moon Jae-in's administration as controversies ranging from the Incheon International Airport contract-worker dispute and the unified Olympic hockey team to the Cho Kuk scandal and the LH real estate scandal fueled concerns about fairness and equal opportunity. Political analysts say younger voters increasingly prioritize jobs, housing affordability, social mobility and fairness over the democracy and peace agenda that resonated with earlier generations shaped by South Korea's democratization movement. The shift first became apparent in the 2021 Seoul mayoral by-election and continued through subsequent national elections, where younger voters became increasingly divided by both ideology and gender. Seeking to reverse the trend, Lee campaigned last year on 27 youth-focused pledges, including matched savings accounts, support for spot cryptocurrency exchange-traded funds and measures to improve digital-asset investment. The effort has yet to translate into stronger support. Lee won the presidential election with 49.42 percent of the vote, but exit polls showed he received just 41.3 percent support among voters in their 20s, the weakest among all age groups. The pattern resurfaced in June's Seoul mayoral election, where conservative candidate Oh Se-hoon again led among younger voters, while a pronounced gender divide persisted. Recent polling underscores the challenge. A Gallup Korea survey released July 3 found Lee's overall job approval rating at 54 percent but only 41 percent among voters in their 20s, again the lowest among all age groups. Separate surveys have also shown the conservative People Power Party improving its standing among younger voters even as Lee maintains majority approval nationwide. Lawmakers from both parties broadly agree on the underlying causes. Democratic Party lawmaker Son Myoung Soo said younger voters respond more strongly than other generations to issues of fairness and expect the ruling party to provide credible solutions. People Power Party lawmaker Jung Sung-kook likewise argued that fairness has become the defining issue for younger generations, while fellow party lawmakers Rep. Woo Jae-jun and Rep. Ahn Sang-hoon pointed to worsening economic prospects, soaring asset prices and growing resentment over policies they believe place heavier burdens on future generations. Within the Democratic Party, some have acknowledged the problem. Rep. Min Byung-deok said the party had failed to demonstrate that it understood young people's struggles or could solve them. For Lee and the Democratic Party, the challenge is no longer simply announcing more youth policies. It is persuading a generation increasingly skeptical of political promises that the government understands the insecurity defining their lives. 2026-07-07 16:19:10
  • Incheon Congestion Road and National Heritage Center Pass Preliminary Feasibility Study
    Incheon Congestion Road and National Heritage Center Pass Preliminary Feasibility Study A new road will be constructed between Hyosung-dong in Incheon’s Gyeyang District and Gongchon-dong in Seo-gu, while a facility for preserving and researching natural heritage will be established in Busan. Additionally, the aging post office in Guro-dong, Seoul, will undergo reconstruction to enhance its commercial and business functions.The Ministry of Strategy and Finance held the 6th Financial Investment Evaluation Committee meeting on July 7, where it reviewed and approved the results of the preliminary feasibility study. The projects that passed the evaluation include the construction of the Bong-o to Gyeongmyeong congestion road, the establishment of the National Heritage Center, and the reconstruction of the aging post office in Guro-dong, Seoul.First, a new 2.9-kilometer road will be built to connect Hyosung-dong in Gyeyang District and Gongchon-dong in Seo-gu. The completion of the Bong-o to Gyeongmyeong congestion road is expected to alleviate traffic congestion caused by large-scale developments in nearby areas, such as the Geomdan district. It is also anticipated to improve traffic conditions in the northwestern part of the metropolitan area.Next, a National Heritage Center will be established in Eulsukdo, Busan, enhancing the preservation, management, exhibition, research, and educational functions related to natural heritage. This initiative aims to strengthen the foundation for preserving the nation’s natural heritage.Finally, the project to reconstruct the aging post office in Guro-dong, which has been in operation since 1983, has also passed the preliminary feasibility study. The reconstruction aims to create a mixed-use facility that combines commercial and business spaces, thereby increasing its revenue base. As part of this project, the financial and postal services of the nearby Gwangjin Post Office will be relocated to the new Guro-dong post office building.Vice Minister Lim Gi-geun stated, "Please ensure that projects directly related to enhancing public convenience and innovating administrative services are carried out without delay. We will continue to conduct thorough and prompt evaluations of the feasibility of financial investment projects."* This article has been translated by AI. 2026-07-07 16:12:00
  • KOSPI Plummets Nearly 5%, Circuit Breaker Activated as Market Closes at 7,650
    KOSPI Plummets Nearly 5%, Circuit Breaker Activated as Market Closes at 7,650 The KOSPI index fell nearly 5% due to massive sell-offs by foreign and institutional investors, closing at the 7,600 level. During trading, the index dropped more than 8%, triggering a first-stage circuit breaker.On July 7, the Korea Exchange reported that the KOSPI closed at 7,656.31, down 395.02 points (4.91%) from the previous trading day.The index opened at 7,919.20, down 132.13 points (1.64%), and continued to decline. At around 10:23 a.m., a temporary trading halt known as a sidecar was activated due to program sell orders. This was the 16th sell-side sidecar this year, and including buy-side sidecars, it was the 32nd.The decline accelerated further, and at 1:51:33 p.m., the KOSPI fell to 7,401.56, marking an 8.07% drop from the previous day, prompting the Korea Exchange to activate the first-stage circuit breaker.The first-stage circuit breaker halts trading for 20 minutes if the KOSPI remains down more than 8% from the previous day's close for one minute.The sharp decline was primarily driven by significant net selling from foreign and institutional investors. In the securities market, individuals net bought 3.1343 trillion won, while foreign and institutional investors net sold 2.9298 trillion won and 308.8 billion won, respectively.Lee Kyung-min, a researcher at Daishin Securities, noted, "Foreign investors sold off shares in sectors such as semiconductors, substrates, shipbuilding, and defense, leading the KOSPI to retreat to the 7,400 level and triggering the circuit breaker."However, he added, "Concerns about a slowdown in fundamental drivers in the domestic market have been raised, but they have not materialized. In fact, signs of improved earnings, upward revisions in forecasts, and adjustments in GDP growth rates are becoming evident."Most of the top market capitalization stocks showed weakness. Samsung Electronics fell 7.08%, SK Hynix dropped 4.87%, SK Square declined 8.90%, Samsung Electro-Mechanics fell 9.74%, Hyundai Motor decreased 5.08%, LG Energy Solution dropped 6.63%, Samsung Life Insurance fell 4.19%, and Samsung C&T declined 5.67%. Only Samsung Biologics saw a rise of 0.57%.The KOSDAQ index closed at 831.23, down 15.84 points (1.87%) from the previous trading day. The index opened at 843.74, down 3.33 points (0.39%), briefly turning positive in early trading but ultimately reversing to a downward trend.In the KOSDAQ market, individuals and institutions net sold 361 billion won and 24.6 billion won, respectively, while foreign investors net bought 387.3 billion won.Top market capitalization stocks showed mixed results. Alteogen rose 1.81%, Kolon TissueGene increased 6.91%, HLB gained 5.44%, and ABL Bio rose 4.32%. In contrast, EcoPro BM fell 1.64%, EcoPro dropped 1.40%, Rainbow Robotics declined 4.38%, JUSUNG Engineering fell 3.36%, Wonik IPS dropped 9.48%, and Rino Technology fell 4.14%.* This article has been translated by AI. 2026-07-07 16:12:00