Key facts
- South Korea's bourse operator, KRX, activated a sell-side sidecar for the KOSPI.
- The KOSPI index fell 5.08 percent to 8,478.91.
- Program trading for the KOSPI was suspended for five minutes.
- The sell-side sidecar is triggered when the KOSPI 200 Futures index decreases 5 percent or more for at least one minute.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) experienced a sharp decline on Friday, prompting the Korea Exchange (KRX) to activate a sell-side sidecar. The index shed 5.08 percent, falling to 8,478.91 points as of 11:13 a.m. This downturn was attributed to investors engaging in profit-taking on big-cap technology shares following a significant 5.42 percent hike the previous day. Consequently, program trading for the KOSPI was suspended for five minutes. A sell-side sidecar is a mechanism triggered when the KOSPI 200 Futures index decreases by 5 percent or more for a minimum of one minute, aimed at curbing excessive market volatility.