Overview
- The KOSPI fell sharply on Thursday after losses in major semiconductor names led the decline, with Samsung Electronics and SK hynix among the largest intraday losers.
- The Korea Exchange activated a five-minute sell-side sidecar to halt program trading during the rout, a move meant to curb momentum selling but not to address underlying valuation concerns.
- Trading flows showed foreigners as net sellers while individual investors bought, reversing broader trends as retail demand for U.S. equities surged in July to about $4.6 billion.
- The tech-heavy KOSDAQ held up far better than the KOSPI, helped by mid-cap biotech, healthcare and robotics stocks that attracted buying and cushioned aggregate losses.
- The episode has widened market-structure and policy risks: heavy ETF and program trading magnified losses, souring domestic investor confidence and creating second-order pressure on the won and on efforts to repatriate retail funds.