Key facts
- Sell-side sidecar triggered by KOSPI 200 Futures Index fall of 5% or more for one minute.
- Semiconductor shares, including Samsung Electronics and SK hynix, were sold off.
- Concerns over US inflation and AI-trade skepticism contributed to the sell-off.
South Korea's bourse operator, the Korea Exchange (KRX), activated a sell-side sidecar for the benchmark Korea Composite Stock Price Index (KOSPI) on Thursday due to a sharp fall. Program trading for KOSPI-listed shares was suspended for five minutes starting at 9:08 a.m. The KOSPI opened 5.59 percent lower and subsequently dropped 303.39 points, or 5.05 percent, to 5,705.42 by 9:11 a.m. Investors sold off semiconductor shares, including Samsung Electronics and SK hynix, amid ongoing skepticism over artificial intelligence (AI)-trade and renewed concerns about the pace of inflation in the United States. A sell-side sidecar is triggered when the KOSPI 200 Futures Index falls 5 percent or more for at least one minute.