Korean stock markets triggered circuit breakers on both the KOSPI and KOSDAQ exchanges on July 29, marking the first time in Korea Exchange history that dual circuit breakers have been activated on consecutive trading days. The KOSDAQ circuit breaker activated at 12:19 PM when the index fell 8.05% to 649.00, followed by the KOSPI circuit breaker at 12:32 PM as the index plunged 8.15% to 5532.33. The circuit breakers were triggered after both indices fell more than 8% from the previous day's closing prices and sustained those declines for over one minute. This represents the 15th circuit breaker activation in KOSPI history (9th this year) and the 14th in KOSDAQ history (4th this year), following similar triggers the previous day when both markets plunged over 8-11% during trading.
Korea Exchange Activates Circuit Breakers on July 29
According to the Korea Exchange, the KOSDAQ circuit breaker activated at 12:19 PM on July 29, halting all trading for 20 minutes. At the time of activation, the KOSDAQ index stood at 649.00, down 56.85 points or 8.05% from the previous trading day. Thirteen minutes later at 12:32 PM, the KOSPI circuit breaker activated when the index reached 5532.33, down 491.33 points or 8.15% from the previous session.
Circuit breakers are Stage 1 market alert measures that activate when the KOSPI or KOSDAQ index falls 8% or more from the previous day's closing price and sustains that decline for at least one minute. Upon activation, all trading halts immediately for 20 minutes, followed by a 10-minute single-price trading period after resumption.
Consecutive Dual Circuit Breakers Mark Korea Exchange First
The consecutive day activation of circuit breakers on both markets represents an unprecedented event in Korea Exchange history. According to exchange records, this is the first time the KOSPI market has experienced circuit breakers on consecutive days. The KOSDAQ market has recorded consecutive-day circuit breakers twice before: during the 2008 global financial crisis and the 2011 U.S. credit rating downgrade.
Side-Car Mechanisms Halt Program Selling Before Circuit Breakers
Before the index plunges, side-car mechanisms activated during morning trading. At 10:55 AM, program sell orders on the securities market were suspended for five minutes due to KOSPI 200 futures index fluctuations. One minute later at 10:56 AM, the KOSDAQ market also suspended program sell orders temporarily.
Korean Stocks Continue Decline After Trading Resumption
Following the resumption of trading, the bearish trend continued. As of the afternoon, the KOSPI stood at 5531.56, down 8.17% from the previous session, while the KOSDAQ recorded 646.69, down 8.38%. Among large-cap stocks, Samsung Electronics traded at 202,500 won, down 7.95%, and SK Hynix plunged 12.97% to 1,349,000 won.
FAQ
What caused the Korean stock market circuit breakers on July 29?
The Korea Exchange activated circuit breakers on July 29 after both the KOSPI and KOSDAQ indices fell more than 8% from the previous day's closing prices and sustained those declines for over one minute. The KOSDAQ triggered at 12:19 PM when it fell 8.05% to 649.00, and the KOSPI triggered at 12:32 PM when it fell 8.15% to 5532.33.
How many times have circuit breakers been activated in Korean stock markets this year?
According to Korea Exchange records, the KOSPI market has activated circuit breakers nine times this year, making this the 15th activation in its history. The KOSDAQ market has activated circuit breakers four times this year, representing the 14th activation in its history.
What happens when a circuit breaker is activated on Korean stock markets?
When a circuit breaker activates, all trading halts immediately for 20 minutes. After the 20-minute suspension, trading resumes with a 10-minute single-price trading period. The circuit breaker is a Stage 1 market alert measure designed to prevent panic selling when indices fall 8% or more from the previous day's closing price for at least one minute.
