Sell-side sidecar activated shortly after the Kospi opens on Monday

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A screen in Hana Bank's trading room in central Seoul shows the Kospi on May 18, when the index plunged more than 4 percent intraday and triggered a sell-side sidecar. The Kospi opened at 7,443.29 that day, down 48.89 points, or 0.67 percent, from the previous trading session. [NEWS1]
A screen in Hana Bank's trading room in central Seoul shows the Kospi on May 18, when the index plunged more than 4 percent intraday and triggered a sell-side sidecar. The Kospi opened at 7,443.29 that day, down 48.89 points, or 0.67 percent, from the previous trading session.

A sell-side trading curb, also known as a sidecar in Korea, was triggered shortly after the Kospi opened on Monday, as Korean shares plunged for two consecutive trading days.

Program sell orders were suspended for five minutes at around 9:19 a.m., the Korea Exchange said, after a sharp drop in the Kospi 200 futures index. The futures index was trading at 1,112.46 at the time of activation, down 60.24 points, or 5.13 percent, from the previous session's close.

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A sidecar halts program trading when a designated market index fluctuates beyond a set threshold. A sell-side sidecar is triggered when the Kospi 200 futures index falls 5 percent or more, and the decline persists for one minute. Regular stock trading continues.

The previous sell-side sidecar was activated on Friday, the immediately preceding trading session. 

The Kospi crossed the 8,000 point mark for the first time on Friday before reversing course and falling below 7,500. It continued to slide, briefly dipping to the 7,100 level.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

BY JUNG SI-NAE [cho.yongjun1@joongang.co.kr]

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