Circuit breaker triggered as KOSPI plunges 8%...10th time this year

[Financial News] A sharp fall in the domestic stock market triggered the 10th circuit breaker this year on the KOSPI market.
Stock trading was temporarily suspended after the KOSPI fell 8% or more from the previous trading day. Losses widened among major stocks, including large-cap semiconductor stocks, amid weakness in U.S. technology shares, as volatility in the domestic stock market surged to extreme levels.
The Korea Exchange said on the 15th that the KOSPI index met the criteria for a Level 1 circuit breaker at 12:38 p.m. that day. The KOSPI fell 480.76 points (8.00%), from its previous closing level of 6,008.81 to 5,528.05. This was the 10th activation on the KOSPI market this year and the 16th on record.
A circuit breaker is a mechanism that temporarily halts trading to mitigate market shocks when stock prices fall sharply.
A Level 1 circuit breaker is triggered when the KOSPI index remains at least 8% below its previous trading-day close for one minute. Once triggered, trading in securities listed on the KOSPI market is suspended for 20 minutes, after which trading resumes following a 10-minute single-price auction. Bonds are excluded from the suspension. 
The sharp decline came amid weakness in U.S. technology stocks. The Korea Exchange cited the weakness in U.S. tech stocks as a main cause of the latest circuit breaker activation. This year, weakness in U.S. tech stocks, sharp falls in semiconductor-related shares, and rising geopolitical risks in the Middle East have repeatedly triggered steep declines in the domestic stock market.
KOSPI circuit breakers were triggered this year for various reasons, beginning with the situation involving the United States, Israel and Iran on March 4, and including a surge in oil prices driven by the Middle East, concerns about U.S. interest rate hikes, and weakness in U.S. big tech stocks.
In particular, circuit breakers were triggered several times in June and July as well, amid sharp falls in semiconductor-related shares and weakness in U.S. technology stocks. The latest action shows that global uncertainty surrounding tech stocks continues to have a significant impact on the domestic stock market.
A circuit breaker was also triggered on the KOSDAQ market the same day. The Korea Exchange added the October 15 action to the KOSDAQ market's activation history, citing weakness in U.S. semiconductor technology stocks as a main cause. 
Although the circuit breaker temporarily halted trading, it remains unclear whether selling pressure will ease even after trading resumes. The recovery of foreign investor flows and the stabilization of large-cap semiconductor stocks are expected to determine the market's direction going forward.

[email protected] Kang Jung-mo Reporter