The Korea Exchange has activated a buy-side circuit breaker on the KOSPI index, halting trading as the benchmark rallied sharply from recent lows.
The intervention was triggered after the index surged 4.1%, reflecting intense buying pressure that exceeded the exchange's stability thresholds.
In late June, the KOSPI plunged nearly 10% as aggressive profit-taking in technology shares accelerated a broader sell-off, triggering multiple circuit breakers.
This marks another instance of the market's extreme volatility in the wake of the broader Asian equity reversal.
The halt follows a period of significant turbulence for South Korea's benchmark index.
In late June, the KOSPI plunged nearly 10% as aggressive profit-taking in technology shares accelerated a broader sell-off, triggering multiple circuit breakers. Since then, the market has seen sharp swings, including a rebound that also triggered circuit breakers on June 25 and 26. The current buy-side halt indicates that bargain hunting among local investors has intensified, driving the index higher at a pace that regulators deemed necessary to pause.
This development highlights the fragile nature of the recovery in Korean equities.