KOSPI Volatility Surpasses Bitcoin in South Korea
The South Korean stock market, specifically the KOSPI index, has seen higher volatility this year compared to Bitcoin. According to Bloomberg data, KOSPI's daily returns swung 63% from their average pace in 2026, surpassing Bitcoin's 48%. The concentration of Samsung Electronics and SK Hynix shares within the KOSPI weight has led to a leveraged AI bet, tying the market's mood to Wall Street sentiment.
The two chipmakers supply memory chips for the AI boom and have surged significantly, with their shares making up over half of the KOSPI's weight. Their stocks' volatility has triggered nine circuit breaker halts this year due to the use of leveraged exchange-traded funds (ETFs) tracking both stocks.
Finance Minister Koo Yun Cheol acknowledged that regulators approved the leveraged products too quickly, leading to exposure caps and higher trading costs to curb retail risk. Meanwhile, Bitcoin's price has trended downward this past year, from near $88,000 in January 2026 to around $63,000 now, a decline of roughly 29%.