BlockBeats News, July 29th, the South Korean Composite Stock Price Index (KOSPI) experienced a intraday decline of over 8%, triggering a market circuit breaker mechanism. The index fell below the 5600 point mark, hitting a recent low. This is the ninth time the circuit breaker mechanism has been triggered in the South Korean stock market this year, marking the second consecutive trading day of circuit breaker activation.

Prior to this, market observers stated that the circuit breaker mechanism in the South Korean stock market has malfunctioned, making it difficult to effectively halt sell-offs.

The core logic behind this round of plummet is a reevaluation of AI semiconductor valuations coupled with structural flaws in the South Korean market. Samsung Electronics and SK Hynix together account for over 40% of the KOSPI market value, with the fluctuation of these two stocks being able to dictate the overall market direction.