Overview
- The KOSPI closed at a record 8,476.15 on Friday, May 29, after a sharp rebound triggered by reports the United States and Iran agreed to extend a ceasefire.
- Gains are heavily concentrated in Samsung Electronics and SK hynix, which together account for roughly half of the market by capitalization and have driven most of the index’s advance.
- The KOSPI 200 volatility index, VKOSPI, rose to about 74.26, signalling investors expect larger swings in the next 30 days even as the headline index hits new highs.
- The Korea Exchange’s new single-stock leveraged ETFs linked to Samsung and SK hynix drew huge inflows and extreme turnover, with over 130,000 retail investors completing mandatory training and billions of won traded on launch, increasing short-term fragility.
- Policy and flow risks are rising because the Bank of Korea held rates at 2.5% while warning of possible tightening, foreign and institutional investors were net sellers, retail investors were net buyers, and margin lending and forced liquidations are at elevated levels that could amplify any decline.