Sell-side sidecar activated on Kospi and Kosdaq as shares tumble

Program trading was briefly suspended on Tuesday after sharp declines in both benchmark indexes triggered market safeguards.

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A screen in Hana Bank's trading room in central Seoul shows the real-time Kospi at 8,996.18 points on June 23, down 118.37 points, or 1.3 percent, from the previous trading session.
A screen in Hana Bank's trading room in central Seoul shows the real-time Kospi at 8,996.18 points on June 23, down 118.37 points, or 1.3 percent, from the previous trading session.

A consecutive sell-side sidecar has been activated on Tuesday as both the benchmark Kospi and the tech-heavy Kosdaq tumbled.

The Korea Exchange activated a sell-side sidecar on the Kosdaq market at 11:37 a.m. and on the Kospi market at 11:40 a.m.

A sidecar halts program trading when certain market indexes fluctuate beyond a designated threshold.

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A sell-side stoppage for the Kospi is triggered when the Kospi 200 Futures index falls 5 percent or more for at least one minute. A sell-side sidecar on the Kosdaq is activated when the Kosdaq 150 futures index fall by more than 6 percent from the reference price and the Kosdaq 150 index falls by more than 3 percent for at least one minute.

As of 11:44 a.m., the Kospi had fallen 356.48 points, or 3.91 percent, from the previous session to 8,758.07. The Kosdaq was trading at 918.94, down 49.46 points, or 5.11 percent, from the previous session.


BY SHIN HYE-YEON [[email protected]]

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

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