Kospi, Kosdaq open sharply lower on tech losses, triggers sell-side sidecars for both
Losses in semiconductor shares dragged down stocks as investors remained skeptical about tech giants' heavy spending on AI.
A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on July 28.
YONHAP
Stocks opened sharply lower on Tuesday — dragged down by losses in tech shares following a sell-off in chipmakers on Wall Street — and triggered sell-side sidecars on the Kospi and Kosdaq, which temporarily halted program trading.
The curb, known locally as a sidecar, was activated on the Kospi at 9:06 a.m., according to the Korea Exchange, marking the index’s 22nd sell-side sidecar this year.
It was activated on the Kosdaq at 9:14 a.m., the 12th of its kind this year.
A sell-side sidecar is triggered for the Kospi when the Kospi 200 futures price falls by 5 percent or more from the reference price and remains at that level for at least one minute. Once activated, it suspends trading of program sell orders for five minutes.
The same happens for the Kosdaq when two conditions are sustained for at least one minute: The Kosdaq 150 futures price falls by 6 percent or more from the previous trading day’s close, and the Kosdaq 150 Index falls at least 3 percent.
At the time of the Kospi sidecar’s activation, the Kospi 200 futures index stood at 1,001.54, down 68.8 points, or 6.42 percent, from the previous session’s close.
At the time of the Kosdaq sidecar’s activation, Kosdaq 150 futures were trading at 1,230.20, down 79.6 points, or 6.07 percent. The Kosdaq 150 Index stood at 1,224.31, down 77.05 points, or 5.92 percent.
The Kospi shed 355.48 points, or 5.26 percent, to 6,400.27 at the opening bell.
Overnight, Wall Street finished mixed. The Nasdaq declined 0.18 percent, while the Dow Jones Industrial Average rose 0.51 percent.
However, semiconductor shares were weak as investors remained skeptical about tech giants’ heavy spending on AI. The PHLX chip index, a gauge of U.S. semiconductor giants, extended its recent sell-off and fell 2.2 percent.
Meanwhile, U.S. President Donald Trump said that Washington and Tehran were having “good talks” and that there was a chance of a deal over the ongoing conflict, though he warned that fighting would resume if negotiations fail.
Update, July 28, 2026: Added information about the Kosdaq.
BY LEE TAE-HEE, YONHAP [[email protected]]
