South Korea’s finance minister convened an emergency market meeting on the evening of July 29 after the KOSPI shed 864.5 trillion won in market value over two trading sessions — the first time circuit breakers were triggered on consecutive days. Finance Minister Koo Yun-cheol led the session, joined by the Bank of Korea governor, the Financial Services Commission chairman, and the Financial Supervisory Service governor.
Circuit Breakers Triggered for First Time on Consecutive Days
The KOSPI closed at 5,663.24 on July 29, down 5.98%, activating market-wide circuit breakers for a second straight day. Over the past month the index has plunged 32.54%, a drop of 2,731.41 points. The market lost 600.33 trillion won on July 28 and another 264.20 trillion won on July 29.
Leveraged ETFs Under Fire
Lawmakers pointed to single-stock leveraged exchange-traded funds launched in May as a key factor in the selloff. They argued the products amplified price swings and concentrated speculative trading in a handful of blue-chip stocks. Koo apologized and acknowledged the leveraged products needed closer study before their introduction, but described them as one cause among several. He did not rule out additional measures to help normalize the market if needed.
Tech Giants Hit Hard
SK Hynix reported record second-quarter revenue of 79.3 trillion won, up 257% year over year, but missed LSEG SmartEstimates of 84 trillion won. Operating profit of 60.54 trillion won also fell short of the 64 trillion won forecast. The stock fell 9.61% on July 29 to 1,401,000 won; over the past month it has lost 46.69%. Samsung Electronics closed at 208,500 won on July 29, down 5.23%, and has dropped 35.45% in the last month.
What Comes Next
Koo said the government is prepared to introduce additional measures if the market does not stabilize. No specific timeline or policy details were announced at the meeting. The next trading session will test whether the emergency response can stem the losses.
