Korean Stock Market Volatility Surpasses Bitcoin, High Concentration of Samsung and SK Hynix Amplifies Market Risk

Odaily News According to Bloomberg data, the year-to-date return volatility of Korea's KOSPI index has reached 63%, surpassing Bitcoin's 48% over the same period, making it the most volatile market among major national stock indices tracked by Bloomberg. The high volatility in the Korean stock market is primarily attributed to excessive market concentration. Samsung Electronics and SK Hynix together account for over 50% of the KOSPI index's weight, making the index highly dependent on the performance of the semiconductor sector.

Additionally, the retail investor-dominated leveraged ETF market in South Korea has further amplified market fluctuations. These leveraged ETFs and the two major chip stocks once accounted for over 70% of the daily trading volume in the Korean stock market. Data shows that Korean retail investors have cumulatively purchased over 110 trillion won (approximately $77 billion) in KOSPI stocks this year, but their herd behavior of chasing gains and cutting losses has also intensified market volatility, gradually turning the Korean stock market into a highly leveraged trading market centered around Samsung Electronics and SK Hynix.