What happens when the KOSPI circuit breaker is triggered?

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Trading Halt Occurs When KOSPI Circuit Breaker is Triggered

When the Korea Composite Stock Price Index (KOSPI) circuit breaker is activated, trading of KOSPI-listed shares is halted for a period of 20 minutes. This measure was recently implemented on July 13, when the Korea Exchange (KRX) triggered the circuit breaker at approximately 1:28 pm. The index had experienced a significant decline, falling by more than 8 percent from its previous closing value.
Circuit Breaker Activation Due to Market Plunge

The KRX initiated the market-wide circuit breaker on July 13 in response to a substantial drop in the KOSPI. The benchmark index saw its value plummet by over 8 percent compared to the prior session's close, prompting the intervention by the bourse operator.
Geopolitical Tensions as a Triggering Factor

The activation of the circuit breaker was directly linked to escalating tensions in West Asia. Specifically, fresh exchanges of strikes between the United States and Iran concerning the status of the Strait of Hormuz led to investor caution and subsequent selling pressure on the KOSPI.
Frequency of Circuit Breaker Use in the Year

The July 13 event marked a notable occurrence in the South Korean stock market, as it was the seventh time this year that the KRX had found it necessary to activate a circuit breaker. This suggests a period of heightened market volatility throughout the year.

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What happens when the KOSPI circuit breaker is triggered?

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