For the seventh time in the year, the Korea Exchange launched a melting mechanism

ON MONDAY, 13 JULY, THE KOREAN STOCK MARKET SUFFERED A MAJOR SETBACK AS A RESULT OF RENEWED TENSION IN THE MIDDLE EAST, AND THE KOREAN EXCHANGE THEN LAUNCHED A MELTING MECHANISM AGAINST THE BENCHMARK KOREA CONSOLIDATED EQUITY INDEX (KOSPI). THE KOSPI INDEX COMPONENT UNIT WAS SUSPENDED FOR 20 MINUTES. AT AROUND 1.28 P.M. ON THE SAME DAY (12:28 BEIJING TIME), THE KOREAN EXCHANGE TRIGGERED A MARKET-WIDE MELTING MECHANISM, AS THE KOSPI INDEX FELL BY MORE THAN 8 PER CENT OVER THE PREVIOUS DAY ' S CLOSING PRICES. THIS FOLLOWED A NEW EXCHANGE OF FIRE BETWEEN THE UNITED STATES AND IRAN AROUND THE STRAIT OF HORMUZ, WHICH LED TO A CAUTIOUS INVESTOR SENTIMENT, RESULTING IN HEAVY SALES PRESSURE ON THE BENCHMARK INDEX. THIS IS THE SEVENTH TIME THE KOREAN EXCHANGE HAS LAUNCHED A MELTING MECHANISM THIS YEAR. KIM XIAN