1100%

The panic in the Korean market is being reported misleadingly

Investor summaryNeutral

Korean market circuit breakers are a delayed reaction to US sell-offs, not independent panic, due to trading hour differences.

Bear points

Global market correlation remains high, with Korean equities acting as a lagging indicator for US downturns.
Circuit breakers indicate significant volatility and potential continued downside pressure from US markets.

降息与宏观

Post body

Yes, the KOSPI hit circuit breakers but this is largely a catch-up move following Friday’s sell-off in the US .

The Korean market’s regular session runs from 09:00 to 15:30 KST (20:00 to 02:30 ET), with extended/off-hours trading from 07:30 to 18:00 KST (18:30 to 05:00 ET).

US equities trade from 09:30 to 16:00 ET in the regular session with extended trading running from 04:00 to 20:00 ET.

So today’s move is less the Korean market pricing in what happened in the US after its own market had closed...

Discussion · top comments15 selected

u/Red-RebelZz 224· 5d agoTop

I disagree. People often get panicked when they see a 10% drop but forget that KOSPI is up like 80% YTD and over 150% from last year’s lows.

u/hellario 45· 5d ago

Beside the point. Apparently you missed how Korean market is supported by crazy leverage.

They expected to go up forever, when it started dropping, people began losing money they don't have, so they started selling ASAP, more people hit their stop loss and started selling -> doom loop.

They had to shut the market down because it was minutes away from plummeting with absolute panic.

u/redzin 27· 5d ago

If you can't handle a 10% drop in the market, you may have over leveraged yourself a bit...

u/Afraid-Policy-3648 13· 5d ago

The Korean "sidecar" circuit breakers are to stop automated/algorithmic trading software from going absolutely haywire (algorithmic selling/buying loops). They make it so an actual human has to take a look at what's happening. It's not related to individual investor panic.

u/AyumiHikaru 39· 5d ago

It is time-to-buy-Lambo selling

u/Brilliant_Voice1126 69· 5d agoTop

I don’t think you can attribute it only to this. Kospi doesn’t like oil shocks either, missiles are flying and oil spiked.

u/littleochre 54· 5d agoTop

Let's not forget the Korean market also went down on Friday.

u/Count-to-3 33· 5d ago

Let's not forget the US chip stock companies also fell Thursday lol.

u/TheSleepyTruth 36· 5d ago

Nah the KOSPI was also down 7% on Friday. Its down another 7+% today... AI chip stocks Samsung and SK Hynix along with LG electronics are tanking. I wouldnt be surprised if AI chip related stocks on the nasdaq tank some more on US market open too. Pergaos the great correction is finally upon us?

u/shiroandae 20· 5d ago

Oh cmon let them feel smart because they finally understood how time zones work and feel the need to tell the entire world about it.

u/rTpure 23· 5d ago

A 10% movement for KOSPI is just a normal Tuesday

I think 50% of the entire index is just 2 companies

u/mistersd 13· 5d ago

Time to load up on skhynix

u/hekatonkhairez 11· 5d ago

Aren’t many Korean traders also really degen.

u/After_Minute5360 13· 5d ago

Quite the opposite, lots of trading on margin

u/Brave_Suggestion945 11· 5d ago

Today's KOSPI trades

Domestic +15,045
Foreign -8,441
Institutes -8,693

Koreans are still very bullish.

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