How the Sidecar Works

The sidecar is an automatic circuit-breaker style mechanism operated by the Korea Exchange. When the KOSDAQ index or eligible stocks move sharply within a short window, the system halts program buying orders for a set period, giving the market time to absorb volatility. Only the side of the order flow that caused the movement — in this case the buy side — is restricted.

Context

Sidecar activations on the KOSDAQ typically occur during bursts of retail-led buying concentrated in technology and semiconductor-related names, a segment that has seen heightened volatility amid swings in AI and chip sentiment. The exchange did not tie the trigger to any single company in the available information, and details on the specific index movement that set off the measure were not provided.

The measure is temporary and expires automatically once the designated window lapses, after which normal program trading resumes unless conditions trigger a further activation.

The claim that a buy-side sidecar was triggered on the KOSDAQ market is True.

Verdict: True