KOSPI Plunges as Volatility Reaches New Heights, Surpassing Bitcoin
The KOSPI has been experiencing sharp fluctuations in 2026 due to investor concerns over AI's sustainability, despite capital expenditures among top hyperscalers growing rapidly.
According to economist Steve Hanke, South Korea's benchmark stock index has become the world's most volatile, surpassing even Bitcoin's volatility.
The KOSPI has been dragged down by a sharp decline in shares of Samsung Electronics and SK Hynix, which comprise over half of the index. Since last month, Samsung shares have dropped 22% while SK Hynix is down more than 34%.
Lale Akoner, global market analyst at eToro Group Ltd., attributed the volatility to a crowded trade meeting leverage and warned that further sharp swings in technology and semiconductor stocks are expected over coming months.