The KOSPI plunged during trading on the 26th, triggering a Stage 1 Circuit Breaker (CB) in the securities market.

The Korea Exchange announced that it triggered the Stage 1 circuit breaker for the securities market at 12:10:12 p.m. on the same day. At the time of activation, the KOSPI stood at 8,198.33, down 731.97 points (-8.19%) from the previous day's close of 8,930.30. Trading was temporarily suspended in accordance with regulations as the KOSPI maintained a decline of more than 8% from the previous close for over one minute.

The sharp decline is interpreted as the result of a simultaneous rush of program selling and profit-taking, driven by a rapid contraction in investor sentiment amid expanding stock market volatility in recent sessions.

■ Trading Resumes at 12:30 p.m. After 20-Minute Halt

When a Stage 1 circuit breaker is triggered, all trading in the securities market is suspended for 20 minutes. The system is designed to give investors time to reassess market conditions during sharp price movements and to curb trading driven by excessive panic.

The Exchange lifted the circuit breaker at 12:30:12 p.m. and resumed market trading. Following the resumption, prices were determined through a single-price auction method that accepted orders for 10 minutes, after which normal trading continued using the conventional continuous matching method. Block trading was available starting from the order acceptance period.

■ Stage 2 and Stage 3 Trigger Conditions... Stage 3 Immediately Ends Trading for the Day

The Exchange explained that if the decline continues, Stage 2 and Stage 3 circuit breakers may be triggered sequentially.

Stage 2 is triggered when the KOSPI falls 15% or more from the previous day's close and remains more than 1% below the Stage 1 trigger index for at least one minute. In this case as well, trading is suspended for 20 minutes.

Stage 3 is applied if, after the Stage 2 trigger, the KOSPI falls 20% or more from the previous close and remains more than 1% below the Stage 2 trigger index for at least one minute. When Stage 3 is triggered, trading in the securities market is immediately closed for the day.

■ Complex Effects of Global Anxiety and Foreign Selling Pressure

The market views the sharp expansion of intraday volatility as the result of complex factors, including anxiety in global financial markets, risk-off sentiment, and widening foreign selling pressure. Investors are closely watching for changes in supply and demand as well as any further expansion of volatility in the afternoon session.

[This article was written with the assistance of AI. This article is not intended to solicit investment, and all investment decisions and responsibilities lie with the investor.]