POLARIS KOREA

LESSON 06 · 6 min

Korea's ±30% price limit

What daily limits and volatility interruptions mean in practice.

Daily movement is bounded

For standard Korean equities, the daily upper and lower limits are generally 30% from the previous close. A stock at its limit may still be difficult to trade if orders are one-sided.

Interruptions are not the same as the daily limit

Volatility interruption mechanisms can pause continuous trading and move a security into a call auction.

  • A displayed price is not a promise of execution.
  • Limit-up and limit-down queues can be extremely unbalanced.
  • Corporate actions and special trading arrangements can affect reference prices.