Sidecar activated as Kospi jumps 5.15% in first 15 minutes of trading

The KOSPI, won-dollar exchange rate, and KOSDAQ index are displayed on the monitor in the dealing room of Hana Bank's headquarters in Jung-gu, Seoul on Thursday. (Yonhap)
The KOSPI, won-dollar exchange rate, and KOSDAQ index are displayed on the monitor in the dealing room of Hana Bank's headquarters in Jung-gu, Seoul on Thursday. (Yonhap)

South Korean stocks soared at the start of Thursday’s trading session, following a major rally on Wall Street overnight. The surge came after US President Donald Trump announced a temporary pause on reciprocal tariffs for key trading partners, including South Korea — with China as the only exception.

The benchmark Kospi jumped 118.11 points, or 5.15 percent, to 2,411.81 within the first 15 minutes of trading. This sharp rebound followed a 17-month low recorded just a day earlier.

The spike triggered a sidecar — a mechanism designed to prevent excessive volatility — at 9:06 a.m., halting program trading for five minutes after Kospi 200 futures surged over 5 percent for more than a minute.

The South Korean won also strengthened sharply. As of 9:15 a.m., the local currency was trading at 1,457 won per US dollar, up 27.1 won from the previous session.

The rally in Seoul followed a historic day on Wall Street. The S&P 500 shot up 9.5 percent, the Dow Jones Industrial Average gained 7.87 percent, and the tech-heavy Nasdaq skyrocketed 12.16 percent — marking one of the strongest single-day gains since the 2008 global financial crisis.

President Trump announced that new tariffs on countries like South Korea would be reduced to 10 percent and suspended for 90 days, citing ongoing negotiations and the absence of retaliatory measures. However, he raised tariffs on Chinese goods to 125 percent after Beijing announced it would hike tariffs on US imports to 84 percent.

In Seoul, major stocks reflected the positive sentiment. Tech giant Samsung Electronics climbed 5.66 percent, and semiconductor maker SK hynix surged 12.55 percent. Leading battery producer LG Energy Solution rose 5.57 percent, while Hyundai Motor advanced 7.13 percent.

Shipbuilders also saw gains: HD Hyundai Heavy increased 7.16 percent, and Hanwha Ocean rose 6.27 percent. Top shipping firm HMM gained 6.33 percent, while major financial group KB Financial added 5.08 percent.

(Compiled from Yonhap and local news reports)