The Korean stock market experienced a sharp decline on May 13, with the KOSPI index falling 8.95% (669.01 points) to close at 6,806.93 as institutional investors sold 2.1968 trillion won and foreign investors sold 1.708 trillion won, overwhelming individual buying of 3.8829 trillion won. The crash was driven by large-scale institutional selling amid Middle East geopolitical risks. Trading safeguards were triggered during the session: a sell-side car activated at 10:34 AM (the 18th this year) and a first-stage circuit breaker at 1:28 PM (the 7th this year), reflecting frozen investor sentiment as the index broke below the 7,000 level.
Trading Safeguards Triggered During Session
According to the Korea Exchange on May 13, a sell-side car was activated at 10:34 AM when KOSPI 200 futures prices fell more than 5%, marking the 18th sell-side car trigger this year. At 1:28 PM, a first-stage circuit breaker was triggered, the 7th circuit breaker activation this year.
Semiconductor Stocks Lead Market Decline
Major stocks, centered on semiconductor companies, closed with declines. Samsung Electronics fell 10.70%, SK Hynix fell 15.37%, SK Square fell 17.60%, Samsung Electronics preferred shares fell 8.96%, Samsung Electro-Mechanics fell 18.62%, Hyundai Motor fell 2.95%, and Samsung Life Insurance fell 4.26%. LG Energy Solution rose 0.77%, KB Financial rose 0.98%, and Samsung Biologics rose 0.36%.
SK Hynix, which successfully entered NASDAQ through an American Depositary Receipt (ADR) listing last weekend, closed sharply lower in the domestic market as profit-taking sales poured in following the steep price rise leading up to the ADR listing.
KOSDAQ Falls on Foreign Selling
The KOSDAQ index expanded its decline due to foreign selling, closing at 799.36, down 4.55% (38.07 points) from the previous trading day. Individuals and institutions bought 211.7 billion won and 173.4 billion won respectively, but foreigners sold 388.1 billion won alone, pulling the index down.
Top KOSDAQ market capitalization stocks closed lower: Alteogen fell 2.31%, EcoPro BM fell 1.48%, EcoPro fell 2.56%, Jusung Engineering fell 4.90%, Rainbow Robotics fell 8.49%, Kolon TissueGene fell 14.89%, Wonik IPS fell 0.16%, Lino Industrial fell 2.03%, PSK fell 2.53%, and HLB fell 29.92%.
Won-Dollar Exchange Rate Closes Above 1,500 Won
In the Seoul foreign exchange market, the won-dollar exchange rate closed the weekly trading at 1,503.4 won, up 2.0 won from the previous trading day. The rate has closed above 1,500 won for three consecutive trading days since May 9.
FAQ
What caused the Korean stock market crash on May 13?
The KOSPI fell 8.95% to 6,806.93 on May 13 due to large-scale selling by institutional investors (2.1968 trillion won) and foreign investors (1.708 trillion won), driven by Middle East geopolitical risks.
How many times has the circuit breaker been triggered this year?
The first-stage circuit breaker triggered at 1:28 PM on May 13 was the 7th circuit breaker activation this year. The sell-side car triggered at 10:34 AM was the 18th this year.
Which stocks fell the most on May 13?
SK Hynix fell 15.37%, Samsung Electro-Mechanics fell 18.62%, SK Square fell 17.60%, and Samsung Electronics fell 10.70% among major stocks. In KOSDAQ, HLB fell 29.92% and Kolon TissueGene fell 14.89%.
