As the domestic stock market plunged for a second straight day, the heads of the economic and financial authorities decided to hold an emergency market situation review meeting on the evening of the 29th.
The Ministry of Economy and Finance said in a message to the press corps that an emergency market situation review meeting would be held in the evening, chaired by Koo Yun-cheol, deputy prime minister for the economy. The meeting will be attended by Deputy Prime Minister Koo, Bank of Korea Governor Shin Hyun-song, Financial Services Commission (FSC) Chairman Lee Eog-weon, and Financial Supervisory Service Governor Lee Chan-jin. The meeting is also called the "F4 (Finance 4) meeting," meaning a gathering of the heads of economic and financial authorities, including macroeconomy, monetary policy, and financial policy.
The Korea Composite Stock Price Index (KOSPI) fell 5.98% to close at 5,663.24, following a 10.84% plunge the previous day. The KOSDAQ fell 6.12% to end at 662.68, after declining 7.72% the previous day.
The Korea Exchange (KRX) invoked a temporary suspension of program sell orders (sell sidecar) for both the KOSPI market and the KOSDAQ market during trading. It was the second straight day following the previous day. This situation is said to be the first ever.
According to data from the Korea Exchange (KRX), there has never been a case of circuit breakers being triggered for two consecutive days in the main board. In the KOSDAQ market, circuit breakers were triggered on consecutive days twice—during the 2008 global financial crisis and the 2011 U.S. credit rating downgrade.
The day's market decline was driven by spreading concerns over whether the improving earnings trend of semiconductor companies such as Samsung Electronics and SK hynix, which had led the stock market's gains, will continue. SK hynix said its second-quarter sales came in at 79.3187 trillion won, up 256.8% from a year earlier, and operating profit rose 557.2% to 60.5426 trillion won. Despite reporting strong results, concerns grew over a drop in demand from U.S. big tech as Chinese firms continue to catch up.