The Korea Exchange has activated a sell-side circuit breaker on the KOSPI index, halting trading as the benchmark suffered a sharp decline.
The measure underscores the continued fragility of South Korean equities, which have been subject to intense selling pressure from both foreign and domestic institutional investors.
The recent history of the KOSPI shows a pattern of sharp reversals, with the index plunging nearly 10% in late June before triggering buy-side circuit breakers during subsequent rallies.
This development follows a period of heightened volatility, with the index turning lower late Monday morning after reversing earlier gains.
The activation of the circuit breaker is a direct response to the rapid downward move, aiming to stabilize trading conditions and prevent further disorderly declines.
This is not the first time the exchange has intervened; circuit breakers were previously triggered during a significant rebound earlier in the week, highlighting the market's sensitivity to sudden shifts in sentiment.
The recent history of the KOSPI shows a pattern of sharp reversals, with the index plunging nearly 10% in late June before triggering buy-side circuit breakers during subsequent rallies.