KOSPI Circuit Breaker Triggered for Second Consecutive Day, Ninth Time This Year

South Korean index drops below 5600 with 8% intraday loss, activating circuit breaker. This marks the ninth activation this year, driven by AI chip valuation shifts.

Woofun AI reports that the South Korean Composite Stock Price Index (KOSPI) declined more than 8% intraday, falling beneath the 5600-point level and triggering a circuit breaker mechanism. This event constitutes the ninth activation of the circuit breaker this year and the second consecutive trading day with such an interruption.

Market observers indicate that the circuit breaker mechanism has malfunctioned, failing to effectively halt sell-offs. The primary drivers include a reevaluation of AI semiconductor valuations and structural market flaws. Samsung Electronics and SK Hynix comprise over 40% of the KOSPI market value, meaning their price movements dictate the overall market direction.