KRX activates sell-side sidecar for KOSPI on sharp decline

The Korea Exchange (KRX) activated a sell-side sidecar for the KOSPI on Wednesday after the index fell more than 4.5%, suspending program trading for five minutes around 10:55 a.m. The decline was driven by retail investors selling large-cap stocks like SK hynix amid concerns that massive spending on artificial intelligence (AI) may not generate sufficient returns to justify elevated tech valuations.

Korea's bourse operator on Wednesday activated a sell-side sidecar for the benchmark Korea Composite Stock Price Index KOSPI after the index fell sharply, led by tech losses. Program trading in KOSPI-listed shares was suspended for five minutes around 10:55 a.m., according to the Korea Exchange KRX . The KOSPI fell by more than 4.5 percent. The decline came as retail investors sold off large-cap stocks, including SK hynix, as investors question whether massive spending on artificial intelligence AI will generate returns enough to justify elevated tech firms' valuations. A sell-side sidecar is triggered when the KOSPI 200 Futures Index falls 5 percent or more for at least one minute.