Why did Seoul shares fall more than 5 percent on Wednesday morning?

Investors dumped technology shares amid rising bond yields and continued geopolitical tensions in the Middle East. Overnight losses on Wall Street also weighed on sentiment, along with stalled peace efforts between the United States and Iran and higher oil prices.

What triggered the five-minute suspension of KOSPI program trading?

The Korea Exchange activated a sell-side sidecar shortly after the opening bell. It was triggered because the KOSPI 200 Futures Index fell 5 percent or more for at least one minute.

Which stocks moved the most in the Seoul market drop?

Samsung Electronics fell 7.08 percent and SK hynix dropped 8.36 percent, making chipmakers the main drag on the market. Hyundai Motor lost 5.17 percent, while Hanwha Aerospace rose 2.97 percent after its U.S. unit won a contract to deliver K9 self-propelled howitzer prototypes to the U.S. Army.

Seoul shares down over 5% late Wednesday morning on tech losses

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Summary

Seoul shares fell more than 5 percent late Wednesday morning as technology stocks dropped amid rising bond yields and geopolitical tensions in the Middle East. The benchmark KOSPI fell 378.03 points, or 5.5 percent, to 6,491.8 as of 11:20 a.m. Program trading on KOSPI-listed shares was suspended for five minutes after the Korea Exchange activated a sell-side sidecar. Samsung Electronics and SK hynix led losses, while Hanwha Aerospace rose after a U.S. unit contract announcement.

Key Facts

The KOSPI was down 378.03 points, or 5.5 percent, to 6,491.8 at 11:20 a.m. after opening 4.96 percent lower.
Program trading for KOSPI-listed shares was suspended for five minutes after the Korea Exchange activated a sell-side sidecar.
A sell-side sidecar is triggered when the KOSPI 200 Futures Index falls 5 percent or more for at least one minute.
Samsung Electronics fell 7.08 percent and SK hynix dropped 8.36 percent, while Hyundai Motor lost 5.17 percent.
The Korean won traded at 1,406.3 won against the U.S. dollar at 11:20 a.m., up 0.27 won from the previous stock trading session's close.

By Yonhap

Published Aug 19, 2026 9:16 am KST
Updated Aug 19, 2026 11:40 am KST

The benchmark KOSPI is displayed at a dealing room of Hana Bank in Seoul, Wednesday. Yonhap

Seoul shares traded more than 5 percent lower late Wednesday morning as investors dumped technology shares amid rising bond yields and continued geopolitical tensions in the Middle East.

After opening 4.96 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended its losses, declining 378.03 points, or 5.5 percent, to 6,491.8 as of 11:20 a.m.

Shortly after the opening bell, program trading for the KOSPI-listed shares was suspended for five minutes, as the Korea Exchange (KRX) activated a sell-side sidecar.

A sell-side sidecar is triggered when the KOSPI 200 Futures Index falls 5 percent or more for at least one minute.

Overnight, Wall Street's major indexes closed lower, as stalled peace efforts between the United States and Iran weighed on investor sentiment and pushed oil prices higher.

The U.S. 30-year Treasury yield rose to its highest level since 2007 amid concerns that elevated energy prices could keep inflation high.

In Seoul, chipmakers dragged down the broader market.

Market bellwether Samsung Electronics dipped 7.08 percent, and its chipmaking rival SK hynix fell 8.36 percent.

Top automaker Hyundai Motor lost 5.17 percent, while leading refiner SK Innovation edged down 0.76 percent.

Hanwha Aerospace rose 2.97 percent following an announcement its U.S. unit had won a contract to deliver K9 self-propelled howitzer prototypes to the U.S. Army.

The Korean won was trading at 1,406.3 won against the U.S. dollar as of 11:20 a.m., up 0.27 won from the previous stock trading session's close.

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