KOSPI Index Surpasses Bitcoin in Volatility Amid Market Turmoil

The KOSPI Index has surpassed Bitcoin in terms of volatility, with its annualized volatility reaching above 60% in 2026. This makes it the world's most volatile major equity benchmark.

The sharp swings in the index have been driven by its heavy concentration in Samsung Electronics and SK Hynix, which together account for more than half of its weighting. The rapid growth in leveraged ETFs tied to these two chipmakers has also contributed to the increased volatility.

In response to the market instability, South Korean regulators have taken steps to reduce speculation and stabilize the market. They have tightened margin requirements, restricted leveraged ETF exposure, increased trading costs, and paused approvals for new single-stock leveraged ETFs.