KOSPI Index Surpasses Bitcoin Volatility Amid Market Swings
The South Korean stock market has taken center stage as its KOSPI Index has surpassed Bitcoin's volatility, with an annualized volatility rate of over 60% in 2026. This makes it the world's most volatile major equity benchmark.
The sharp swings have been driven by the index's 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 market's volatility.
In response to the intense speculation and volatility, South Korean regulators have implemented measures to reduce speculation and stabilize the market. These include tightening margin requirements, restricting leveraged ETF exposure, increasing trading costs, and pausing approvals for new single-stock leveraged ETFs.