[DigitalToday reporter Sangyeob Oh (오상엽)] Trading on the main board was temporarily halted after the KOSPI fell more than 8 percent from the previous close.

The Korea Exchange said the KOSPI index stood at 8,378.25 as of 2:33:43 p.m. on Tuesday. That was down 736.30 points, or 8.07 percent, from the previous close of 9,114.55.

A level-one circuit breaker was triggered on the main board after the KOSPI stayed down more than 8 percent from the previous close for 1 minute. Trading was halted for 20 minutes from the time it was triggered.

A circuit breaker is a market stabilisation measure designed to respond to sharp price swings in the stock market. If an index remains sharply lower beyond a certain threshold, it temporarily halts trading across the market to ease overheated sentiment and curb a rapid spread of selling.

The exchange triggers a level-two circuit breaker if, after a level-one trigger, the KOSPI falls more than 15 percent from the previous close and remains at least 1 percent below the level-one trigger level for 1 minute. If level two is triggered, trading is halted again for 20 minutes.

After a level-two trigger, a level-three circuit breaker is activated if the KOSPI falls more than 20 percent from the previous close and remains at least 1 percent below the level-two trigger level for 1 minute. In that case, trading on the main board ends for the day.

Local stocks extended their losses rapidly during the session. After sell-side sidecars were triggered in the morning on the KOSPI and KOSDAQ markets, a circuit breaker was also triggered on the main board in the afternoon, sharply weighing on investor sentiment.