Hanhik will prohibit limit up and down orders in response to the 29.96% plunge in pre-market trading.

The Korean stock market regulator, Next Trade, has announced a temporary ban on limit orders, both for the highest and lowest prices, due to a reported case of price distortion in the pre-market trading session. This move comes after SK Hynix's 11th week share price plummeted by 29.96% to 116,800 won during the pre-market session on June 6th, sparking concerns of price manipulation.

The situation was similar to a similar incident on March 28th of last year, where shares of Samsung Electronics and Alteon also hit their respective limit prices within minutes of the market opening.

Next Trade explained that some of these limit order issues might be due to errors during the order processing, but the financial watchdog had previously warned about potential "cumulative effects on market prices and misleading traders or causing confusion" if the same trading method were to spread further. The regulator is currently monitoring for any signs of unusual price spikes or drops.

To address the issue, Next Trade plans to introduce a static volatility index (SVI) from next month. The SVI will ensure that orders involving a 10% price change from the previous day’s trading price will not be executed immediately but rather be converted into a single-trade transaction (matching price), which will then be settled at the equilibrium price.