Viewpoint: The circuit breaker mechanism in the Korean stock market has failed and is unable to effectively halt sell-offs.

BlockBeats reports that on July 29, the KOSDAQ index plunged by more than 8% during trading, triggering a Level 1 circuit breaker (activated when the index drops more than 8% from the previous day's closing price and lasts for 1 minute).

The circuit breaker mechanism is no longer effective in halting sell-offs. Previously, on July 28, both KOSPI and KOSDAQ consecutively triggered Level 1 circuit breakers on the same day, but KOSPI still ended up crashing 10.84% and KOSDAQ fell 7.72%.