The KOSPI plunged in intraday trading on the 13th, triggering a sell sidecar. SK hynix (000660.KS) also fell more than 9%, giving up the 2 million won level.
According to the Korea Exchange (KRX), the KOSPI stood at 7,113.15 as of 10:49 a.m., down 362.79 points, or 4.85%, from the previous session. The index opened at 7,412.03, down 63.91 points, or 0.85%, and briefly turned positive during the session before reversing and widening its losses.
In response, the KRX triggered a sell sidecar on the main board at 10:34 a.m., suspending the effect of program sell orders for five minutes. The measure came after the price of KOSPI 200 futures fell more than 5% from the previous session and remained there for at least one minute. This marked the 18th sell sidecar on the KOSPI this year alone.
On the main board, foreign and institutional investors dumped shares in large volumes, dragging down the index. Foreigners were net sellers of 574.8 billion won and institutions of 571.3 billion won. Retail investors scooped up 1.1159 trillion won, but that was not enough to hold off the selling from foreigners and institutions.
Most top market-cap stocks were in the red. Samsung Electronics (005930.KS) was trading at 267,500 won, down 6.14%. SK hynix, which listed American Depositary Receipts (ADRs) on the U.S. Nasdaq on the 10th, plunged 9.82% to trade at 1,966,000 won, below the 2 million won mark. SK Square and Samsung Electronics preferred shares were also down 12.21% and 6.12%, respectively.
Analysts cited concerns over a peak-out in the memory chip cycle and renewed geopolitical tensions between the United States and Iran as causes of the KOSPI's sharp fall. Han Ji-young, a researcher at Kiwoom Securities, said, "Despite the success of SK hynix's ADR listing, concerns over the peak-out in the memory chip cycle itself have not been resolved." He added, "The record-level volatility in semiconductor stocks is increasing fatigue and prompting an exodus of supply and demand."
