South Korean stocks close more than 7% lower after trading halts
In short
South Korea's KOSPI and KOSDAQ closed more than 7% lower on October 15 after intraday falls triggered 20-minute trading halts in both markets. Chosun Ilbo reported closing levels of 5,554.22 for the KOSPI, down 7.57%, and 760.82 for the KOSDAQ, down 7.65%.
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South Korean shares closed more than 7% lower on October 15 after steep intraday losses triggered circuit breakers in both the KOSPI and KOSDAQ markets. Chosun Ilbo reported that the KOSPI finished down 454.59 points, or 7.57%, at 5,554.22. The KOSDAQ ended down 63.06 points, or 7.65%, at 760.82. Yonhap also reported declines of more than 7% at the close. [ 38 , 39 ]
Trading was halted for 20 minutes in the KOSDAQ market at about 12:23 and in the KOSPI market at about 12:38, according to reports citing the Korea Exchange. Dong-A Ilbo and Newsis put the indexes at 757.88 and 5,528.05 respectively when the halts were triggered, representing falls of 8.01% and 8.00%. Kyunghyang Shinmun reported slightly different levels of 757.81 and 5,527.12, both down 8.02%. [ 7 , 12 , 28 ]
First-stage circuit breakers are triggered when an index stays at least 8% below its previous close for one minute, the reports explained. During the 20-minute halt, new orders are suspended except for cancellations. Trading then resumes with 10 minutes of single-price trading. Yonhap reported the KOSDAQ's resumption at 12:44 and the KOSPI's at 12:59. Earlier in the session, both markets had also triggered sell-side sidecars affecting program-trading orders. [ 3 , 12 , 19 , 23 ]
Chosun Ilbo linked the decline to US consumer inflation exceeding expectations and renewed doubts about returns on AI infrastructure investment. It reported US September consumer prices rising 3.7% year on year against expectations of 3.6%. Foreign investors sold a net approximately 4.8 trillion won in the main market, while individuals and institutions were net buyers, according to the outlet. Samsung Electronics and SK Hynix fell by roughly 9% to 11%, it reported. [ 38 ]
The day's combined halts were the first in both markets on the same day since July 29, according to several reports. Electronic Times reported that losses remained in the 7% range after the circuit breakers. Chosun Ilbo subsequently reported that the KOSPI had declined for seven consecutive trading sessions. [ 12 , 27 , 28 , 40 ]
Why it matters
Reports linked the selloff to higher-than-expected US inflation and concerns over returns on artificial intelligence investment. Chosun Ilbo reported about 4.8 trillion won in net foreign selling in the main market, with major technology stocks falling.
Key facts
- Both KOSPI and KOSDAQ closed more than 7% lower. [ 35 , 36 , 37 , 38 , 39 ]
- Chosun Ilbo reported the KOSPI close at 5,554.22, down 7.57%, and KOSDAQ at 760.82, down 7.65%. [ 38 ]
- The KOSDAQ trading halt began at about 12:23 and the KOSPI halt at about 12:38. [ 7 , 12 , 28 , 31 , 34 ]
- First-stage circuit breakers halt trading for 20 minutes after an index remains at least 8% below its previous close for one minute. [ 3 , 4 , 12 , 31 ]
- Yonhap subsequently reported trading had resumed in both markets. [ 19 , 23 ]
Confirmed by several sources
Still unclear
- Reports give slightly different index levels at the trading halts. Kyunghyang Shinmun reported 5,527.12 for KOSPI and 757.81 for KOSDAQ, while several other outlets reported 5,528.05 and 757.88.
What local media are saying
Timeline, local time
- The KOSDAQ market triggered a first-stage circuit breaker. [ 3 , 12 , 28 ]
- The KOSPI market triggered a first-stage circuit breaker. [ 12 , 28 , 31 ]
- Yonhap reported KOSDAQ trading had resumed. [ 19 ]
- Yonhap reported KOSPI trading had also resumed. [ 23 ]
- Yonhap reported closing declines of more than 7% in both indexes. [ 39 ]