KRX activates sell-side sidecar for KOSPI amid sharp fall

Key facts

• South Korea's bourse operator, KRX, activated a sell-side sidecar for the KOSPI.
• The sell-side sidecar was triggered by a sharp fall in the KOSPI index.
• Program trading for KOSPI-listed shares was suspended for five minutes.
• The KOSPI fell 5.6 percent to 6,485.01 as of 09:07 a.m.
• Investors sold off semiconductor shares, including Samsung Electronics and SK hynix.
• The sidecar is triggered when the KOSPI 200 Futures Index falls 5 percent or more for at least one minute.

South Korea's benchmark Korea Composite Stock Price Index (KOSPI) experienced a sharp decline, prompting the Korea Exchange (KRX) to activate a sell-side sidecar. Program trading for KOSPI-listed shares was suspended for five minutes starting at 09:06 a.m. on Wednesday. The KOSPI opened 4.96 percent lower and subsequently lost 384.82 points, or 5.6 percent, to trade at 6,485.01 as of 09:07 a.m. The sell-off was driven by investors selling semiconductor shares, including those of Samsung Electronics and SK hynix, mirroring overnight losses on Wall Street. These losses were attributed to stalled U.S.-Iran peace talks, which led to increased oil prices and bond yields. A sell-side sidecar is automatically triggered when the KOSPI 200 Futures Index falls by 5 percent or more for a duration of at least one minute.