The KOSPI index dropped more than 3%, falling to the 6610 level. Major semiconductor stocks, including Samsung Electronics and SK Hynix, experienced significant declines, prompting sell-side circuit breakers to activate in both the KOSPI and KOSDAQ markets, indicating increased market volatility.
As of 11:43 a.m. on July 20, the KOSPI was trading at 6612.24, down 208.36 points (3.05%) from the previous trading day. The index opened at 6643.58, down 2.60%, and continued to decline throughout the session.
Investors were primarily selling, with individuals and institutions offloading 322.3 billion won and 129.8 billion won, respectively, contributing to the index's drop. In contrast, foreign investors were net buyers, purchasing 427.3 billion won.
The sell-side circuit breaker for the KOSPI, the 20th of the year, was triggered at 11:21 a.m. This occurs when the price of the most traded futures contract based on the KOSPI 200 falls by more than 5% for one minute.
The decline was led by major semiconductor stocks. Samsung Electronics was trading at 246,000 won, down 9,000 won (3.51%). SK Hynix also fell by 61,000 won (3.31%), trading at 1,781,000 won.
Other large-cap stocks also showed weakness. Hyundai Motor was down 24,000 won (5.65%), trading at 401,000 won. Conversely, Samsung SDI surged by 54,900 won (29.82%), reaching 239,000 won.
The KOSDAQ index experienced an even larger decline, recording a drop of 37.62 points (4.75%) to 754.22 at the same time.
The KOSDAQ market triggered its 10th sell-side circuit breaker of the year at 10:52 a.m., as the KOSDAQ 150 futures fell by more than 6% and the KOSDAQ 150 index dropped by over 3% for one minute.
Factors weighing on the domestic stock market include deteriorating investor sentiment towards semiconductor stocks and geopolitical uncertainty in the Middle East. Semiconductor stocks in the U.S. and Japan showed weakness during the holiday period, and ongoing tensions between the U.S. and Iran have dampened risk appetite among investors.
Lee Kyung-min, a researcher at Daishin Securities, stated, "As the U.S. continues its nighttime airstrikes against Iran for the eighth consecutive day, and Iran has been intercepting vessels attempting to pass through the Strait of Hormuz, geopolitical uncertainty in the Middle East persists."
* This article has been translated by AI.
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