On the 4th, following the KOSPI, the KOSDAQ index also plunged, triggering consecutive program sell order temporary suspensions (sidecars). It was the first time in about four months that sell sidecars on both the KOSPI and KOSDAQ were activated together since Nov. 5 last year, when the market tumbled amid debate over inflated valuations for artificial intelligence (AI).
The Korea Exchange (KRX) activated a sell sidecar on the KOSDAQ market at 10:31 a.m. that day. For the next five minutes, program trading sell orders were suspended and then automatically lifted.
The exchange had also activated a sell sidecar on the main board at 9:06 a.m. that day. This was the fifth time this year.
A sidecar is triggered when KOSPI 200 futures rise or fall 5% or more from the previous close and the move lasts for one minute. For the KOSDAQ, it is triggered when KOSDAQ 150 futures fall 6% or more and, after the KOSDAQ 150 index falls 3% or more and the move lasts for one minute.
As of 11:19 a.m. that day, the KOSPI index was down 468.98 points (-8.10%) at 5,322.93, and the KOSDAQ index was down 92.46 points (8.13%) at 1,045.24 at the same time.