South Korea’s KOSPI Triggers 20-Minute Halt as Losses Top 8%

South Korea’s benchmark KOSPI fell more than 8% Thursday, Oct. 15, prompting a 20-minute trading halt as the decline extended a regional selloff that hit Japan and Taiwan.

The index opened 5.59% lower before selling accelerated during the afternoon. Trading resumed after 20 minutes, and the KOSPI closed at 5,554.22. Samsung Electronics fell 9.48%, while SK Hynix lost 11.06%.

Foreign investors have pulled about $131 billion from South Korean equities so far this year. Samsung Electronics and SK Hynix accounted for 87% of net foreign selling on the KOSPI through Oct. 12. The two chipmakers together make up more than half of the benchmark’s weighting, leaving the index highly sensitive to their share prices.

Losses spread across Asian markets on Oct. 15. Japan’s Nikkei 225 fell 4.90%, Taiwan’s benchmark dropped 3.41% and Hong Kong’s Hang Seng Index declined 1.03%.

Samsung’s buyback was effectively completed in early October, while SK Hynix had completed about 80% of its planned repurchase by then. In the next sessions, investors will watch whether foreign selling slows or new company buying helps fill the gap.