South Korean stocks suffered a broad selloff on October 15, with the benchmark Kospi closing 454.59 points, or 7.57 percent, lower at 5,554.22. That was its lowest close since April 7, when the index finished at 5,494.78, according to Korea Exchange figures reported by Maeil Shinmun. SBS reported that the Kospi had fallen for seven consecutive trading sessions, its longest losing streak in two years.
The rout triggered circuit breakers in both major markets as intraday losses reached 8 percent. Trading in the Kosdaq was suspended for 20 minutes after a first-stage circuit breaker was activated at about 12:23 p.m., when the index stood at 757.88, down 8.01 percent. Roughly 15 minutes later, the same safeguard was activated in the Kospi after it fell 8 percent to 5,528.05.
- Kospi close
- 5,554.22, down 7.57 percent
- Kosdaq circuit breaker
- Activated at about 12:23 p.m. after an 8.01 percent decline
- Kospi circuit breaker
- Activated roughly 15 minutes later after an 8 percent decline
Reports attributed the decline to a combination of concerns about prolonged high interest rates, inflation, uncertainty over the profitability of artificial intelligence infrastructure investment and rising international oil prices. Foreign investor selling and the resulting gap in market demand were also cited as factors that intensified the fall. Markets in Japan and Taiwan also declined, but YTN reported that their losses were in the 3 to 4 percent range, smaller than the drop in South Korea.
Regulators examine volatility and market conduct
The Financial Services Commission convened an emergency meeting with the Financial Supervisory Service, Korea Exchange, other related institutions and market experts. Officials reviewed market conditions and investor flows as external uncertainty increased. The commission said it would apply a zero-tolerance approach to false rumors, price manipulation and illegal short selling that could exploit market anxiety.
The immediate impact falls most heavily on investors facing abrupt portfolio losses, but the consequences may extend beyond trading accounts. Reports warned that losses from falling share prices, combined with higher borrowing costs, could weaken household sentiment and cloud the outlook for the real economy. Attention now turns to whether selling pressure persists after the trading interruption and whether regulators announce additional measures following their market review.