KRX Activates KOSPI Sidecar After Sharp Market Drop

Korea Exchange activated a sell-side sidecar for the KOSPI on Tuesday after the benchmark index fell sharply in Seoul, temporarily suspending program trading at 9:48 a.m. as investors sold shares amid pressure on technology stocks.

According to Korea Exchange (KRX), program trading for KOSPI-listed shares was halted for five minutes after the emergency market measure was triggered during the decline.

The KOSPI opened 3.1 percent lower and fell 257.09 points, or 4.03 percent, to 6,127.15 as of 9:50 a.m., according to KRX.

Investors sold semiconductor shares including Samsung Electronics and SK hynix, with losses in US technology stocks weighing on sentiment ahead of major company earnings reports and the release of US inflation data, according to the Korea Times.

KRX's sell-side sidecar mechanism is designed to temporarily pause program trading when the KOSPI 200 Futures Index drops 5 percent or more for at least one minute.

The measure was applied as market participants responded to weakness in technology-related stocks and broader concerns affecting investor activity, according to the Korea Times.