South Korea's KOSPI index tumbled 8.4% on Monday, forcing a Level 1 circuit breaker that stopped all trading for 20 minutes. The selloff hit at 9:03 a.m. local time, driven by a global semiconductor rout that swept through Asian markets and risk assets.
Monday's Trading Freeze
The circuit breaker kicked in automatically after the index fell past the 8% threshold. Exchange rules require a 20-minute halt for Level 1 triggers, giving traders time to regroup. When trading stopped, the KOSPI was down roughly 8.4% from the prior close. The pause was the first of its kind since March 2020.
Semiconductor Selloff in Focus
The drop was led by a broad selloff in semiconductor stocks, which spilled over from global markets. Chipmakers face headwinds from weaker demand, supply-chain snarls, and shifting trade policies. South Korea's heavyweight chip sector — home to Samsung Electronics and SK Hynix — drove the index lower as investors fled risk assets. The KOSPI's semiconductor subindex fell sharply, though exact figures weren't immediately available.
Asian Markets Under Pressure
Monday's rout wasn't isolated to Seoul. Broader Asian equity markets also slid as the semiconductor selloff hit Tokyo, Taipei, and Shanghai. Investors moved into safe-haven assets like the yen and gold, while the Korean won weakened against the dollar. The Bank of Korea said it was monitoring volatility but took no immediate action. Trading resumed at 9:23 a.m. local time, with the KOSPI still down more than 8%.
