The volatility of the South Korean stock market exceeds that of Bitcoin, with Samsung and SK Hynix highly concentrated, amplifying market risks

Bloomberg data shows that the Korea Composite Stock Price Index (KOSPI) has experienced a volatility of 63% this year, surpassing Bitcoin's 48% during the same period, making it the market with the highest volatility among major national stock indices tracked by Bloomberg. The high volatility in the Korean stock market is mainly due to the excessive concentration of the market. Samsung Electronics and SK Hynix together account for over 50% of the KOSPI index weight, making the index's performance highly dependent on the semiconductor sector.

In addition, the leverage ETF market dominated by Korean retail investors has further amplified market volatility. The related leveraged ETFs and the two major chip stocks once accounted for over 70% of the daily trading volume in the Korean stock market. Data shows that Korean retail investors have cumulatively purchased over 110 trillion won (approximately 77 billion USD) worth of KOSPI stocks this year, but their behavior of chasing gains and cutting losses has also intensified market fluctuations, turning the Korean stock market into a high-leverage trading market centered around Samsung Electronics and SK Hynix.