South Korea's KOSPI Index Volatility Exceeds 60% This Year, Surpassing Bitcoin

According to Bloomberg, South Korea's KOSPI index has recorded volatility exceeding 60% as of July 21, nearly double that of Japan's Nikkei 225 and surpassing Bitcoin's typical swings. The Korean exchange has triggered circuit breakers seven times this year, compared to zero instances in 2025 and just one in 2024. The volatility stems primarily from Samsung Electronics and SK Hynix, whose combined market cap represents over 50% of the KOSPI index. Their stock prices surged on AI optimism, but the sector carries high valuation risk as AI revenues have yet to justify infrastructure costs.

Leveraged ETF proliferation has amplified price swings. South Korean retail investors have funneled over $4 billion into leveraged ETFs tracking individual stocks this year, accounting for 70% of related daily trading volumes and magnifying volatility. Goldman Sachs strategists identified leveraged ETFs as "a key risk to monitor."