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 the activation of sell-side circuit breakers in both the KOSPI and KOSDAQ markets, which 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 selling off, with individuals and institutions recording net sales of 322.3 billion won and 129.8 billion won, respectively, while foreign investors were net buyers, purchasing 427.3 billion won.
The sell-side circuit breaker for the KOSPI was triggered for the 20th time this year at 11:21 a.m. The circuit breaker is activated when the price of the most traded futures contract based on the KOSPI 200 index falls by more than 5% for one minute.
The decline in the index was primarily driven by major semiconductor stocks. Samsung Electronics was trading at 246,000 won, down 9,000 won (3.51%) from the previous day. 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. In contrast, Samsung SDI saw a significant increase, rising by 54,900 won (29.82%) to 239,000 won.
The KOSDAQ index experienced an even larger decline. At the same time, the KOSDAQ index was recorded at 754.22, down 37.62 points (4.75%) from the previous day.
The KOSDAQ market triggered its 10th sell-side circuit breaker of the year at 10:52 a.m. This was due to the KOSDAQ 150 futures contract falling by more than 6% and the KOSDAQ 150 index dropping 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, Iran has also been intercepting vessels attempting to pass through the Strait of Hormuz, contributing to ongoing geopolitical uncertainty in the region."
* This article has been translated by AI.
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