Odaily Planet Daily reports, according to Bloomberg data, the South Korean Composite Index (KOSPI) has experienced a volatility of 63% year-to-date, surpassing Bitcoin’s 48% during the same period, making it the most volatile market among major national stock indices tracked by Bloomberg. The high volatility in South Korea’s stock market is primarily due to excessive market concentration. Samsung Electronics and SK Hynix together account for over 50% of the KOSPI index’s weight, making the index’s performance highly dependent on the semiconductor sector.
In addition, South Korea’s retail investor-dominated leveraged ETF market has further amplified market volatility. Related leveraged ETFs, along with two major semiconductor stocks, once accounted for over 70% of daily trading volume on the Korean stock market. Data shows that South Korean retail investors have collectively purchased over 110 trillion Korean won (approximately $77 billion) in KOSPI stocks this year; however, their trend-chasing behavior has intensified market swings, turning the Korean stock market into a highly leveraged trading arena centered around Samsung Electronics and SK Hynix.