[Edaily Reporter Kim Kyung-eun ] The KOSPI index plummeted more than 7% during trading on the 16th, falling back below the 7,000 mark just one day after rebounding. The KOSDAQ also fell more than 5%, joining the broader market decline. This morning, sell-side “side-car” measures (temporary suspension of program sell orders) were triggered consecutively on both markets.

According to MP Doctor, as of 1:09 p.m. today, the KOSPI is trading at 6,835.04, down 449.37 points (6.17%) from the previous trading day.

The index opened at 6,960.50, down 323.91 points (4.45%) from the previous close, and has continued its downward trend. At one point during the session, it plunged 7.6% to 6,730.87.

In the market, foreign investors and institutions are both selling off shares. Foreign investors are net sellers of 1.2629 trillion won, while institutions are net sellers of 1.4892 trillion won. Retail investors, on the other hand, are the only ones taking a defensive stance, with net purchases of 2.7088 trillion won.

By sector, telecommunications, paper and wood, food, beverages, and tobacco, as well as textiles and apparel, are showing strength. In contrast, electrical and electronics, manufacturing, machinery and equipment, medical and precision instruments, and securities are weak.

SamsungElectronics(005930)and SK hynix(000660), the blue-chip stocks of the domestic market, are both trading lower. SamsungElectronics is trading at 257,500 won, down 22,000 won (7.87%) from the previous close, while SK hynix is trading at 1,846,000 won, down 236,000 won (11.34%).

This is interpreted as the domestic stock market being affected by the downtrend in semiconductor stocks on the New York Stock Exchange overnight, driven by concerns over artificial intelligence (AI) infrastructure investment. On the 15th (local time), while the three major U.S. stock indices all rose, semiconductor stocks saw profit-taking. SK hynix’s American Depositary Receipts (ADRs) fell 9.00% today after surging 27.29% the previous day.

Kim Yu-mi, an analyst at KIWOOM Securities, said, “Concerns over delays in data center construction, among other factors, contributed to the correction in semiconductor stocks,” but added, “Given the strong performance of major platform companies, expectations for AI investment demand remain valid.”

The Bank of Korea’s Monetary Policy Committee raised the benchmark interest rate by 0.25 percentage points from 2.50% to 2.75% during its monetary policy meeting this morning. However, since this move was already on a predictable path, its impact on the market is expected to be limited.

Kang Jin-hyuk, an analyst at Shinhan Investment Securities, noted, “Stocks related to the AI value chain plummeted due to profit-taking following the previous day’s sharp rally and lingering doubts about the semiconductor sector,” adding, “Although the Monetary Policy Committee raised the benchmark interest rate for the first time in three years and six months, the impact on the stock market was limited as this move had already been factored into the market.”

As of this writing, the KOSDAQ index is trading at 793.70, down 35.74 points (4.28%) from the previous close. The index opened at 813.32, down 16.11 points (1.94%) from the previous trading day, but continued its downward trend and failed to hold above the 800 mark.

In the KOSDAQ market, foreign and institutional investors are net sellers of 271.9 billion won and 80.0 billion won, respectively. Retail investors, meanwhile, are net buyers of 344.1 billion won.

The two largest companies by market capitalization are also falling in tandem. Alteogen Inc.(196170)is trading at 280,000 won, down 8,500 won (2.95%) from the previous close, while ECOPRO BM CO., LTD.(247540)is trading at 112,800 won, down 8,100 won (6.70%).

Amid the sharp decline in the KOSPI and KOSDAQ indices today, sell-side circuit breakers were triggered consecutively on both markets.

According to the Korea Exchange, at approximately 9:10:26 a.m. today, the effectiveness of program sell orders on the stock market was suspended for five minutes due to fluctuations in the KOSPI 200 futures index. The KOSPI sell-side car is triggered when the KOSPI 200 futures index falls by 5% or more and the decline persists for one minute.

Subsequently, at approximately 10:20:00 a.m., a sell-side sidecar was triggered on the KOSDAQ market. The KOSDAQ sell-side sidecar is triggered when the KOSDAQ 150 Index falls by 3% or more, or the KOSDAQ 150 futures fall by 6% or more, and the decline persists for one minute.

This marks the 19th time the KOSPI sell-side circuit breaker has been triggered this year and the 9th time for the KOSDAQ market. The sell-side circuit breakers for both markets were triggered for the first time in two trading days since the 14th.