South Korea's KOSPI sidecar, a market safeguard that temporarily suspends program trading order validity, has been activated 49 times this year, including a buy-side trigger on the previous day, according to the Korea Exchange on the 21st. Sell-side triggers accounted for 25 activations and buy-side triggers for 24. The KOSDAQ mechanism was activated 32 times, with 18 buy-side and 14 sell-side triggers. The frequency is unprecedented: KOSPI sidecars were triggered twice in 2024 and three times last year, compared with 26 activations during the 2008 global financial crisis. KOSDAQ has already exceeded its 2008 record of 19 triggers. The mechanism was introduced on KOSPI in November 1996, with detailed trigger conditions applied from 2001, but market participants say its five-minute suspension of only program trading orders may be less effective in an era of high-frequency trading and algorithmic strategies. Possible reforms include widening the KOSPI 200 Futures threshold or revising the mechanism's scope, although the Korea Exchange is not currently reviewing specific changes. The exchange plans to announce detailed plans in the second half of this year for a three-tier KOSDAQ structure comprising Premium, Standard and Management segments. Meanwhile, retail investors net purchased 16.1 trillion won in leveraged ETFs while net selling 10.2 trillion won in KOSDAQ stocks from the start of the year through early August. Average daily turnover from the start of this year through August was 35.2 trillion won on KOSPI and 12.4 trillion won on KOSDAQ, a gap of about 2.8 times, compared with little difference in 2023. Shinhan Securities analyst Noh Dong-gil said KOSDAQ's drawdown from its late-July low reached 47.4%, reflecting capital migration toward markets with export exposure and earnings growth rather than only a preference for large-cap stocks.