Seoul: South Korea's bourse operator on Monday activated a sell-side sidecar for the benchmark Korea Composite Stock Price Index (KOSPI) after the index fell sharply, led by losses in semiconductors.

According to Yonhap News Agency, program trading in KOSPI-listed shares was suspended for five minutes around 11:22 a.m., as reported by the Korea Exchange (KRX). The KOSPI experienced a significant decline, falling nearly 4.25 percent as of 11:25 a.m.

The decline was attributed to escalating tensions in the Middle East, following the death of a third member of the U.S. military during a weekend of attacks between the United States and Iran. A sell-side sidecar is activated when the KOSPI 200 Futures Index drops 5 percent or more for at least one minute.