Korean Analyst: Korean Market May Continue Range-Bound Until Year-End

Odaily Planet Daily News The South Korean stock market is attempting to rebound after a recent sharp correction, but analysts suggest it will not be easy to reclaim previous highs within the third quarter. With KOSPI margin balances still at elevated levels, market volatility could expand further. The market is expected to maintain a range-bound, direction-seeking trend until the end of the year.

iM Securities researcher Kim Jun-young stated in a report on the 20th: "Instead of expecting the KOSPI index to return to its previous highs within the third quarter, it is more likely that the market will continue in a phase of range-bound consolidation and direction seeking, which could extend until the end of the year." "The persistently high margin balances mean that high market volatility could further amplify index fluctuations," he added. "If the index falls further, one must also be wary of credit selling risks triggered by margin liquidation." (Jin Shi)