Svmuu News: Volatility in South Korea’s benchmark stock index has reached such extreme levels that investors and analysts are comparing the market’s sharp intraday swings to the “meme stock” craze.Although this comparison may seem somewhat exaggerated at first glance—given that the KOSPI index is underpinned by strong earnings from world-leading chip manufacturers—it is not entirely without merit.
With retail investor interest continuing to heat up, the KOSPI has closed with a gain or loss of at least 5% on 20 trading days this year, compared to just two such instances in all of 2025.Samsung Electronics has seen 8 trading days this year with gains or losses of 10% or more, compared to none last year; SK Hynix has had 11 such days this year, compared to 2 in 2025.This brings to mind the frenzy surrounding stocks like GameStop and Bed Bath & Beyond (BBBY) in the past. A major driver of the surge in volatility has been retail investors’ frenzied buying of leveraged ETFs tracking individual stocks.
In addition, the growing dominance of these two heavyweight stocks has further exacerbated volatility. According to estimates by Goldman Sachs, a 5% fluctuation in the South Korean stock market could trigger approximately $4.7 billion in ETF rebalancing capital flows, as options traders need to adjust their risk exposure. This amount is equivalent to about one-eighth of the trading volume on a typical trading day in the South Korean stock market.(Jin Shi)