The trigger for this slump was the strong desire of foreign investors to realize profits in large semiconductor stocks that were leading the stock market. As stocks with top market capitalization, such as Samsung Electronics and SK Hynix, became embroiled in controversy over their overvaluation due to past concentration, foreigners engaged in large-scale net selling, strongly pulling down the index. Experts believe that this situation is not a collapse of fundamentals, but rather a result of technical adjustments and supply-demand imbalance caused by portfolios that are overly concentrated in certain sectors. Nevertheless, the sentiment of market participants was extremely depressed, which led to a chain of sell-offs and an expansion of the index decline to around 5%.

Immediately after Sidecar was launched, the market seemed to take a breather, but investors' anxiety did not easily subside. Even though a measure was taken to suspend program sell bids for 5 minutes simultaneously in the stock market and KOSDAQ market, the trend after the lifting was still a bearish market. In particular, the fact that the 27th sidecar has been activated in the KOSPI market alone this year clearly shows how highly exposed our stock market is to current volatility. This figure exceeds even the records recorded during the past financial crisis, proving that improving the fundamentals of the capital market is an urgent task that can no longer be postponed.

Meanwhile, the authorities' moves to calm market anxiety were also detected. The Financial Supervisory Service announced an ambitious plan to drastically shorten the supervision cycle of listed companies, which currently averages 20 years, to 10 years for KOSPI and 5 years for KOSDAQ. Based on the judgment that repeated accounting fraud cases are fundamentally damaging market trust, the plan is to expand the supervision organization from two departments to four departments and establish a preventive supervision system using artificial intelligence. By strengthening the authority to quickly expel companies that commit serious accounting violations from the market, we have demonstrated our strong will to simultaneously ensure investor protection and market transparency.

Despite the market crisis, the Korea Exchange is focusing on expanding its business for the future. Attending 'BIO USA 2026' held in the United States and carrying out activities to attract KOSDAQ listings for global bio companies is a strategic move to promote the advantages of our market, such as the technology special system, to the international community. Although the domestic stock market is currently suffering from the aftereffects of the outflow and concentration of foreign funds, fundamental efforts are being made to align the market structure with global standards by actively attracting quality overseas companies and strengthening accounting transparency. This clearly demonstrates the financial authorities' policy stance to focus on restoring market trust and creating a virtuous cycle of capital rather than focusing on short-term fluctuations.