The Korea Exchange activated a sell sidecar at 9:12 a.m. on the 7th in the KOSPI market. This is the first time a sell sidecar has been activated since the so-called 'Black Monday and Friday' crisis last August.
The sell sidecar is a system that limits the effectiveness of quotes for program trading for five minutes when future prices plummet in the futures market.
The KOSPI 200 futures recorded 311.9 as soon as the market opened at 9 a.m., down 17.25 points (5.24%) from the previous trading day. According to the Korea Exchange, the net selling volume of program trading reached 292.8 billion won by 9:12 a.m.
The tariff policy of the Donald Trump U.S. administration has triggered 'panic sell' in global stock markets. The Japanese stock market also saw a sharp decline in the Nikkei 225 Average (Nikkei 225 Index) futures and TOPIX futures, leading to the activation of a sidecar.