[News Today] RECORD KOSPI PLUNGE…“CIRCUIT BREAKER” ACTIVATED

[LEAD]
Yesterday, the KOSPI, South Korea's primary stock market index, experienced an unprecedented plunge. It set records for the largest ever single-day drop and the highest number of stocks declining. Both the KOSPI and KOSDAQ markets saw sharp falls in stock prices, leading to the activation of the "circuit breaker" system to temporarily halt trading.

[REPORT]
The local stock market was thrust into
fear at the opening bell.

As soon as the session opened, the benchmark KOSPI fell sharply and continued the freefall to eventually end the day at just over 2,440 points.

The index lost 234 points from the previous trading day, the largest ever drop in terms of closing price.

As for the rate of plunge, it marked the 5th steepest decline in history.

The stock price of 924 shares, or 98% of those listed on the main bourse, posted a drop, setting another record for a single day with the highest number of shares down in value.

As a result, circuit breakers were activated to temporarily suspend trading as they come into force when the KOSPI or the secondary KOSDAQ plunge over 8%.

It's the first time they were activated since March 2020 during the height of the COVID-19 pandemic.

Park Sang-hyun / Hi Investment & Securities
U.S. recession fears and sharp appreciation of the Japanese yen have fueled
the dramatic plunge.

All in all, a record 192 trillion won or some 140 billion dollars was wiped from the KOSPI and 43 trillion won or around 31 billion dollars from the KOSDAQ in market capitalization in one day.

Foreign investors net sales amount to 1.5 trillion won or nearly 1.1 billion dollars worth of shares on the domestic securities market alone.

The volatility index, an indicator of investor jitters, surged by the second largest margin since the opening of the local stock market.