[Edaily Reporter Kim Kyung-eun] On the 8th, the KOSPI plunged by more than 8% shortly after the market opened, triggering a circuit breaker (CB, temporary suspension of trading). This was the result of fears of a Fed interest rate hike surging following the release of U.S. May employment figures that far exceeded expectations, coupled with a 10% plunge in the Philadelphia Semiconductor Index, which led to a sell-off across the domestic semiconductor sector.

According to the Korea Exchange, at 9:03 a.m. on the 8th, the KOSPI fell 685.85 points (8.40%) from the previous day’s closing price (8,160.59 points) to 7,474.74, triggering the first-stage circuit breaker. This marks the third time this year and the ninth time in history.
The trigger was a sharp drop in semiconductor stocks due to concerns over a U.S. Federal Reserve interest rate hike. The circuit breaker suspension halted trading of all stocks on the KOSPI market for 20 minutes; following its lifting, trading transitioned to continuous trading after a 10-minute period of single-price trading. The first-stage circuit breaker is triggered when the index falls by more than 8% compared to the previous trading day and the decline persists for one minute.
On the KOSDAQ market, a sell-side sidecar (suspension of sell orders in program trading) was triggered at 9:06 a.m. The trigger conditions were met as the KOSDAQ 150 futures plunged 7.95% and the KOSDAQ 150 index fell 8.11% for one minute.
The suspension of sell orders in program trading lasted for 5 minutes before being automatically lifted. This marks the 12th time a sidecar has been triggered this year.
The source of the day’s decline was the New York stock market overnight. On the 5th (local time), the U.S. Department of Labor reported that nonfarm payrolls increased by 172,000 in May, more than double the market forecast of 80,000. As the possibility of an early interest rate hike by the Fed surged, the Nasdaq plunged 4.18% and the Philadelphia Semiconductor Index (SOX) crashed 10.3%.
Micron (-13.3%), AMD (-10.9%), and Marvell Technology (-13.3%)—which had led the KOSPI rally the previous day—faced a sell-off. The likelihood of a hawkish message emerging from the Federal Open Market Committee (FOMC) meeting on the 17th and 18th, the first to be chaired by new Fed Chair Kevin Warsh, has also increased.
As of 9:07 a.m., the KOSPI is down 683.13 points (8.37%) from the previous trading day, standing at 7,477.46. The intraday low is 7,442.73. The KOSDAQ is also trading at 936.04, down 66.40 points (6.62%).
By investor type, foreign investors are leading the decline with net sales of 342.1 billion won on the KOSPI. While retail and institutional investors are propping up the index with net purchases of 207.1 billion won and 142.1 billion won, respectively, their efforts are proving insufficient.
Top-cap stocks are plummeting across the board. #Samsung Electronics is trading at 298,500 won, down 30,500 won (9.27%), and #SK Hynix is trading at 1,904,000 won, down 166,000 won (8.02%). #Samsung Life Insurance (-14.91%), #Samsung C&T (-12.38%), #SK Square (-11.13%), #Hyundai Motor (-9.86%), #Samsung Electro-Mechanics (-9.16%), #Samsung Electronics Preferred (-12.70%), #HD Hyundai Heavy Industries (-4.97%), and #LG Energy Solution (-3.86%)—all top-market-cap stocks—are extending their losses.
On the KOSPI, only 24 stocks are rising, while 867 are falling, indicating that virtually all stocks are plummeting in unison.
On the KOSDAQ, top-market-cap stocks such as #Alteogen (-8.57%), #Ecopro BM (-8.88%), #Ecopro (-10.13%), #Rainbow Robotics (-6.59%), #SamchundangPharmaceuticals (-8.73%), #RinoIndustries (-5.53%), and #HLB (-5.14%) are among the top market cap stocks that are plummeting one after another.