KOSPI Ends Down 6.4% After Wild Swings in Rollercoaster Trading

Sell-Side Sidecars Triggered Again on Both Markets

Amid a sharp decline with the KOSPI falling below the 6800 level during trading, employees are monitoring the stock market and exchange rates in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul on July 16. On that day, the KOSPI opened at 6,960.50, down 323.91 points (4.45%) from the previous session, and the KOSDAQ index opened at 813.32, down 16.11 points (1.94%). July 14, 2026 Photo by Yongjun Cho

After surging more than 6% the previous day, the KOSPI swung sharply on the 16th, falling more than 6% and repeating a cycle of volatility. The index fluctuated significantly due to deteriorating investor sentiment in U.S. semiconductor stocks and simultaneous selling by both foreign and institutional investors.

On this day, the KOSPI closed regular trading at 6,820.60, down 6.37% from the previous day. The entire 6.24% gain from the previous close was erased, causing the index to drop back to the 6,800s. After immediately falling below the 7,000 mark at the open, it briefly plunged into the 6,700 range. Right after the market opened, a program sell-side sidecar was triggered, temporarily halting the effectiveness of sell orders. This was the 37th time this year that buy or sell sidecars have been activated in the KOSPI market. Sell-side sidecars were triggered for the 19th time, and it was the second time in two trading days since July 14.

Heavy net sales by both foreign and institutional investors pulled the index down. Foreign investors posted a net sale of 1.9292 trillion won, while institutions net sold 3.0570 trillion won. Meanwhile, individual investors net bought 4.8047 trillion won.

By industry, the largest declines were in electrical and electronics (-9.43%), manufacturing (-7.51%), machinery and equipment (-4.70%), construction (-3.30%), retail (-3.19%), finance (-2.98%), medical and precision instruments (-2.78%), and securities (-2.64%). In contrast, telecom (3.39%), food, beverage and tobacco (2.12%), and paper and wood (2.00%) rose.

The top 10 KOSPI stocks by market capitalization also fell across the board. SK hynix (-11.4%), SK Square (-11.9%), Samsung Electro-Mechanics (-9.2%), Samsung Electronics (-8.5%), Hyundai Motor Company (-2.5%), and Samsung Life Insurance (-1.7%) posted the biggest declines. Kia (2.4%) and Samsung Biologics (0.5%), however, gained.

The KOSDAQ index also fell, closing at 791.84, down 4.53% from the previous day. After opening down 1.94% from the previous close, the sell-side sidecar was triggered around 10:20 a.m. as the market grew more volatile.

Once again, foreign investors and institutions posted net sales of 366.6 billion won and 158.0 billion won, respectively. In contrast, individuals net bought 508.8 billion won.

Nearly all KOSDAQ sectors declined. The largest drops were in machinery and equipment (-6.78%), electrical and electronics (-6.53%), non-metal (-5.78%), finance (-5.63%), and manufacturing (-4.94%). However, publishing and media reproduction (3.29%), textiles and apparel (3.05%), and paper and wood (2.19%) advanced.

Most of the top 10 KOSDAQ stocks by market capitalization also fell. Jusung Engineering (-10.3%), Ecopro (-7.7%), Rainbow Robotics (-7.2%), Leeno Industrial (-7.0%), Ecopro BM (-6.6%), PSK (-5.9%), and Alteogen (-4.1%) recorded significant losses. Only HLB gained, rising 2.0%.

Losses among U.S. semiconductor stocks on the New York Stock Exchange overnight are considered a primary cause for the index declines. Delays in artificial intelligence (AI) data center construction, potential slowdowns in investment by big tech companies, and concerns over increased memory supply due to the planned large-scale initial public offering of Changxin Memory from China appear to have weighed on the market. On July 15 (local time), the Philadelphia Semiconductor Index fell 2.08%. Micron Technology (-8.02%), Intel (-4.43%), and AMD (-3.46%) all declined sharply. SK hynix American Depositary Receipts (ADR), which had surged the day before, also plummeted 9.00%.

This content was produced with the assistance of AI translation services.