The Korean exchange originally planned to launch weekly single-stock options on June 29, but decided to delay the launch shortly before the scheduled date. Bloomberg, citing informed sources, reported that discussions are still ongoing, and a spokesperson for the Korean exchange stated that no final decision has been made yet.
Originally intended to cover four major South Korean blue-chip stocks
As previously arranged, this batch of weekly options will cover SK Hynix, Samsung Electronics, Hyundai Motor, and LG Energy Solution. Compared to existing monthly options, weekly products have shorter durations and are typically better suited for short-term trading and more frequent risk hedging.
The Korean market currently has 64 individual stock monthly options listed. If weekly products are launched, it will mean the exchange is further expanding its supply of short-term derivatives to meet investors’ demand for more flexible trading tools.
Regulators have recently shifted to a more cautious stance.
This delay occurred after South Korean regulators expressed concerns about another type of highly volatile product. Recently, regulators expressed regret over the May launch of single-stock leveraged ETFs and warned that the associated negative impacts are growing.
Under this context, the weekly options have been temporarily postponed, viewed by the market as a signal that regulators are reassessing the risks of short-cycle leveraged instruments. In particular, concerns among regulators about amplified speculation have significantly intensified following the rapid rise in stock markets.
Stock market volatility has increased cautionary sentiment.
South Korea’s stock market was once among the world’s top-performing major markets this year, but volatility significantly increased during the rally. After the KOSPI reached a recent high on Monday, it plunged by approximately 10% the following day, prompting regulatory attention due to the sharp fluctuations.
From an international perspective, short-term options have expanded rapidly in recent years. In the U.S., 0DTE options now account for more than half of the trading volume in S&P 500 index options. Since Hong Kong introduced weekly individual stock options in 2024, trading activity in this segment has continued to rise.
However, South Korea has always been sensitive to the speculative risks of derivatives. Kospi 200 index options once became one of the most actively traded contracts globally in the 2000s, but regulators tightened multiple restrictions in the early 2010s due to excessive speculation and heightened volatility. In recent years, as South Korea seeks to attract more foreign capital, these restrictions have gradually been eased.
This delay demonstrates that, despite rising valuations and increased retail trading activity, South Korean regulators continue to prioritize controlling market volatility.