The KOSPI index has dropped to the 5,300 range as the domestic stock market experienced a dramatic decline for two consecutive days, triggering circuit breakers in both the KOSPI and KOSDAQ markets for the first time in history.
According to the Korea Exchange, as of 1:20 PM on July 29, the KOSPI was down 672.52 points (11.16%) at 5,351.14. The index started the day with a rise of 65.45 points (1.09%) at 6,089.11 but quickly reversed course and expanded its losses.
As the decline continued, a circuit breaker was activated in the KOSDAQ market at 12:19 PM, halting trading for 20 minutes. Thirteen minutes later, at 12:32 PM, a circuit breaker was also triggered in the KOSPI market.
The exchange activates a first-stage circuit breaker when the KOSPI or KOSDAQ index falls more than 8% compared to the previous day and remains at that level for over a minute. When activated, trading and order cancellations are paused for 20 minutes, followed by 10 minutes of single-price trading upon resumption.
This marks the 15th activation of a circuit breaker in the KOSPI market and the ninth this year, while the KOSDAQ has seen its 14th activation and fourth this year. This is the first instance of simultaneous circuit breakers being triggered in both markets for two consecutive days.
Earlier in the day, at 10:55 AM in the KOSPI market and 10:56 AM in the KOSDAQ market, a temporary halt on program buy orders (sell-side circuit breaker) was also implemented.
In the KOSPI market, individual and foreign investors have sold a net 1.6793 trillion won and 472.5 billion won, respectively. In contrast, institutional investors have made a net purchase of 2.154 trillion won, indicating a move towards bargain hunting.
All major stocks in the KOSPI index are experiencing declines. Samsung Electronics is down 11.32%, SK Hynix by 16.58%, SK Square by 14.70%, Samsung Electro-Mechanics by 14.72%, Hyundai Motor by 5.36%, LG Energy Solution by 6.37%, Samsung Biologics by 5.87%, KB Financial by 4.42%, and Samsung Life by 10.53%.
At the same time, the KOSDAQ index has fallen by 70.64 points (10.01%) to 635.21. The index started at 713.71, up 7.86 points (1.11%), but quickly turned downward and widened its losses.
In the KOSDAQ market, foreign investors have made a net purchase of 223.7 billion won, while individual and institutional investors have sold a net 216.1 billion won and 6.9 billion won, respectively.
Most of the top stocks in the KOSDAQ index are also showing weakness. Alteogen is down 9.27%, EcoPro BM by 12.18%, EcoPro by 11.97%, Rainbow Robotics by 7.49%, Juseong Engineering by 14.60%, Rino Technology by 10.39%, HLB by 5.26%, Wonik IPS by 15.98%, and ABL Bio by 11.34%. However, Pharma Research is up 0.40%.
* This article has been translated by AI.
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