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Korea Exchange halts KOSPI trading after sharp drop amid U.S.-Iran tensions

Korea Exchange halts KOSPI trading after sharp drop amid U.S.-Iran tensions

South Korean stocks sank on Monday, triggering a 20-minute marketwide circuit breaker as the KOSPI fell more than 8%; Korean media said foreign and institutional selling drove the move while retail investors bought heavily.

Fact Check
The claim is corroborated across multiple independent sources dated July 13, 2026. The Chosun English article confirms KOSPI fell over 8% intraday and triggered a circuit breaker, with foreign net selling of ~2.25 trillion won and institutional net selling of ~573 billion won. BlockBeats and odaily confirm the 20-minute halt, the 7th circuit breaker of the year, foreign and institutional selling, and heavy retail (individual) net buying of nearly 2.7 trillion won. The odaily newsflash explicitly attributes the selloff to escalating US-Iran tensions in the Strait of Hormuz and confirms the 20-minute halt. The '20-minute' halt matches the standard first-stage KOSPI circuit breaker rule for an 8%+ decline. All key elements of the claim — Monday date, 8%+ drop, marketwide circuit breaker, foreign/institutional selling, retail buying, and US-Iran context — are supported by the evidence.
Summary

South Korean stocks fell sharply on Monday, prompting the Korea Exchange to activate a marketwide circuit breaker and suspend trading in KOSPI component stocks for 20 minutes at about 1:28 p.m. local time after the KOSPI dropped more than 8% from the previous session’s close. The selloff came amid renewed U.S.-Iran tensions tied to the Strait of Hormuz, according to the source material. Korean media also reported that the drop marked the market’s seventh circuit breaker of the year and was driven by foreign net selling of KRW 2.23 trillion and institutional net selling of KRW 570 billion, while retail investors were net buyers of nearly KRW 2.7 trillion.

Terms & Concepts
  • KOSPI: South Korea’s main stock market index.
  • circuit breaker: A temporary marketwide trading curb triggered during sharp price moves to slow volatility.
  • Strait of Hormuz: A major global oil shipping chokepoint at the center of the reported U.S.-Iran tensions.