SEOUL, July 8 (Xinhua) -- South Korean stocks closed sharply lower Wednesday, with the benchmark index losing more than 5 percent, after sell-side trading curbs were triggered on both the main and tech-heavy markets.
The benchmark Korea Composite Stock Price Index (KOSPI) closed down 409.52 points, or 5.35 percent, at 7,246.79.
The tech-heavy KOSDAQ closed down 46.23 points, or 5.56 percent, at 785.00. The KOSDAQ fell below the 800-point level during intraday trading for the first time in about 10 months since Sept. 4 last year, Yonhap News Agency reported.
According to the Korea Exchange, a sell-side "sidecar" was triggered on the main bourse at 1:31 p.m. local time, temporarily suspending the effect of program sell orders. A similar measure was triggered on the KOSDAQ market at 1:33 p.m.
Earlier in the day, South Korean Minister of Economy and Finance Koo Yun-cheol convened a meeting with officials from the Bank of Korea and financial regulators to review market conditions and discuss policy responses, the ministry said.
Participants said South Korea's financial and foreign exchange markets had shown heightened volatility due to expectations of higher global policy rates and continued foreign capital outflows.
On the stock market, officials assessed that volatility had increased as shares underwent a correction after previous sharp gains, amid profit-taking by foreign and institutional investors, rebalancing-related selling and shifting expectations for the global artificial intelligence sector. They agreed to closely monitor risk factors that could trigger excessive stock market volatility.
Noting that the semiconductor sector's growing share of the market had become a factor behind increased financial market volatility, they said South Korea will actively foster next-generation growth engines in non-IT sectors, including bio, defense and aerospace. Enditem
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