According to BlockBeats, on August 5, market data revealed that the KOSDAQ index in South Korea experienced a significant drop of 8%, which led to the activation of the circuit breaker mechanism. This sharp decline in the index reflects heightened volatility and market instability, prompting automatic measures to halt trading temporarily to prevent further losses and allow investors to reassess the situation. The circuit breaker is a regulatory tool designed to curb panic-selling and provide a cooling-off period during periods of extreme market fluctuations. The activation of this mechanism underscores the current challenges faced by the South Korean stock market and the broader economic uncertainties influencing investor sentiment.