Korean Stock Market Overtakes Bitcoin in Volatility

The South Korean stock market, driven by AI-linked stocks Samsung Electronics and SK Hynix, has shown higher volatility in 2026 compared to Bitcoin. According to Bloomberg data, the KOSPI's daily returns swung 63% from their average pace this year, while Bitcoin's returned just 48%. The concentration of Samsung and SK Hynix shares in the KOSPI, which make up over half its weight, has tied the market's mood to Wall Street sentiment.

When the KOSPI closed at a record high in June, more than 650 of its 831 stocks fell. This mirrors an earlier AI memory stock selloff that hit SK Hynix this month. Individual investors hold most of the leveraged exchange-traded funds (ETFs) that track Samsung and SK Hynix, amplifying the swings further.

The Korea Exchange has had to halt trading nine times this year due to volatility, compared with just once in 2024. The Finance Minister acknowledged regulators approved the leveraged products too quickly, but officials have since pledged exposure caps and higher trading costs to curb retail risk.