South Korea’s benchmark Kospi index has experienced volatility described as extreme, with some investors and analysts comparing the sharp intraday swings to “meme stock” trading frenzies. According to Odaily, while the Kospi has been supported by strong earnings from globally leading chip manufacturers, the comparison has been viewed as not entirely unfounded.
Retail investor interest has continued to rise. This year, the Kospi has recorded 20 trading sessions in which it closed up or down by at least 5%, compared with two such sessions in 2025.
Samsung Electronics has had eight trading days this year with moves of 10% or more, versus none last year. SK Hynix has recorded 11 such days this year, compared with two in 2025. The heightened volatility has been linked in part to heavy retail buying of leveraged ETFs tied to individual stocks.
The growing dominance of the two heavyweight stocks has also contributed to market swings. Goldman Sachs estimates that a 5% move in South Korean equities could trigger about $4.7 billion in ETF rebalancing flows as options dealers adjust risk exposure, an amount it said is roughly one-eighth of typical daily trading volume in the market.
STOCKS | South Korea’s Kospi Sees Extreme Volatility as Retail Trading Intensifies
2026-06-24 09:43:45
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