The Korea Composite Stock Price Index (KOSPI) experienced a significant selloff on July 13, dropping 7.87% to 6,887.68 points as of 1:00 p.m.; the Korea Exchange (KRX) triggered the market-wide circuit breaker, halting trading in KOSPI-listed stocks for 20 minutes. This is the seventh time the circuit breaker has been activated this year. Foreign investors net sold more than 2 trillion won, while institutional investors net sold more than 610 billion won.
Dual triggering factors behind the KOSPI falling below 7,000 points
According to market analysts, the two main independent triggers behind this KOSPI plunge are as follows: first, the United States and Iran have once again clashed over the status of the Strait of Hormuz. Investors remained cautious, facing heavy selling pressure (see related coverage of the U.S.-Iran conflict).
Second, a report released by Chae Min-sook, a researcher at Korea Investment & Securities, predicted that SK hynix’s Q2 operating profit would be 6.04 trillion won, which is 8% lower than the market’s general expectation of 6.5 trillion won. This raised doubts in the market about semiconductor performance. The combination of these two factors triggered an early sell signal during the trading session, and the decline then continued widening until it triggered the market-wide circuit breaker.
Trading directions of foreign and institutional investors, major stock declines, and the backdrop of the seventh circuit breaker this year
Based on real-time market data for July 13, 2026, the flow of funds and the price movements of major stocks are as follows:
Foreign investors: net sold more than 2 trillion won
Institutional investors: net sold more than 610 billion won
Individual investors: net bought 2.6 trillion won against the trend
SK hynix stock: down more than 13%, trading above 1.8 million won
Samsung Electronics stock: down more than 9%
Korean won to U.S. dollar at market open: 1,499.3 won (down 2.1 won)
After the KOSPI’s decline exceeded 8%, the KRX triggered the market-wide circuit breaker, the seventh time this year. During the circuit breaker period, trading in KOSPI-listed stocks was halted for 20 minutes.
Frequently asked questions
What are the direct causes of the KOSPI plunge on July 13, 2026?
According to analyst explanations, the plunge was driven by two independent factors: the renewed conflict between the United States and Iran over the status of the Strait of Hormuz, which sparked a global risk-hedging sentiment; and a prediction from Korea Investment & Securities that SK hynix’s Q2 operating profit would be 8% lower than market expectations (6.04 trillion won vs. the expected 6.5 trillion won), creating additional selling pressure on the semiconductor sector.
How does South Korea’s KOSPI circuit breaker mechanism work, and when was it triggered this time?
According to reports, the KRX’s market-wide circuit breaker mechanism is triggered when KOSPI’s intraday decline exceeds 8%; this time, it was triggered at 1:28 p.m. on July 13, 2026, halting trading in KOSPI-listed stocks for 20 minutes. This is the seventh time (in 2026) that the circuit breaker has been activated. The specific trigger rules are subject to the KRX’s official regulations.
How did foreign and institutional investors act during this plunge?
Based on market data, foreign investors net sold more than 2 trillion won, and institutional investors net sold more than 610 billion won, resulting in a massive combined sell-off. Individual investors, meanwhile, net bought 2.6 trillion won against the trend, absorbing much of the selling pressure. SK hynix shares fell more than 13%, and Samsung Electronics shares fell more than 9%.
