[Opinion: The Circuit Breaker Mechanism in the South Korean Stock Market Has Failed, Unable to Effectively Halt Sell-offs] BlockBeats News, July 29: Today, the KOSDAQ index plunged over 8% intraday, triggering a Level 1 circuit breaker (activated when the index drops more than 8% from the previous day's closing price and sustains the decline for 1 minute). The circuit breaker mechanism is no longer effective in halting sell-offs. Previously, on July 28, both the KOSPI and KOSDAQ triggered Level 1 circuit breakers on the same day, but the KOSPI still ultimately plummeted 10.84%, while the KOSDAQ fell 7.72%. The core logic behind this round of sharp declines is the revaluation of AI semiconductor valuations combined with structural flaws in the South Korean market. Samsung Electronics and SK Hynix together account for over 40% of the KOSPI's market capitalization, meaning the fluctuations of these two stocks can dictate the overall market direction. Currently, Samsung Electronics is down 5.45%, and SK Hynix is down 9.81%.