The KOSPI index plunged 8% from the previous day, triggering a Level 1 circuit breaker (CB) on the securities market.

According to a disclosure by the Korea Exchange on the 15th, the KOSPI composite index remained more than 8% below the previous day's closing price for one minute as of 12:38:12 p.m., halting trading on the securities market for 20 minutes.

At the time of the trigger, the KOSPI index stood at 5,528.05, down 480.76 points from the previous day's close of 6,008.81, a decline of 8.00%.

■ KOSPI Follows KOSDAQ

Earlier, at 12:23:13 p.m. the same day, a Level 1 circuit breaker was also triggered on the KOSDAQ market as the index fell 8.01% from the previous day. As a result, trading was temporarily suspended on the securities market following the KOSDAQ market.

■ Conditions for Level 2 and Level 3 Circuit Breakers

According to the Korea Exchange, a Level 2 circuit breaker is triggered if, after the Level 1 trigger, the KOSPI index falls more than 15% below the previous day's closing price and remains more than 1% below the Level 1 trigger index for one minute. In this case, trading on the securities market is halted again for 20 minutes.

If, after the Level 2 trigger, the KOSPI index falls more than 20% below the previous day's closing price and remains more than 1% below the Level 2 trigger index for one minute, a Level 3 circuit breaker is triggered, ending trading on the securities market for the day.

Meanwhile, the regulatory basis for this temporary trading halt on the securities market is Article 25 of the Securities Market Business Regulations and Article 39 of the Enforcement Rules of the same regulations.