KOSPI volatility interruptions hit record high in H1 2026
Seoul, July 5
South Korea's bourse operator triggered a record number of Volatility Interruption measures on the benchmark KOSPI market in the first half of this year as the market swung sharply amid a strong rally, data showed on Sunday.
A total of 29,357 VIs were triggered on the KOSPI in the January-June period, the highest figure ever recorded for a six-month period, according to the Korea Exchange (KRX), reports Yonhap news agency.
The previous record was 24,401 in the first half of 2020, when the market was rattled by the COVID-19 pandemic.
A VI is a market mechanism designed to curb excessive price swings in individual stocks. When a stock's price moves sharply within a short period, trading is temporarily shifted to a two-minute call auction.
The KOSPI also posted its second-highest first-half volatility on record.
The benchmark index's average intraday volatility stood at 3.3 percent in the first six months of this year, the second-highest first-half figure after 3.51 percent in the first half of 1998.
Intraday volatility is calculated by dividing the difference between the day's high and low by the average of the day's high and low, measuring how widely the index fluctuates during a trading session.
The heightened volatility came as the KOSPI rallied on gains in semiconductor stocks amid the artificial intelligence-driven memory chip supercycle, triggering both aggressive buying and profit-taking after the market's sharp gains.
Market volatility was further amplified by geopolitical risks stemming from the conflict between the United States and Iran, which began in late February.
The KOSPI first surpassed the 5,000-point mark in January, broke above 6,000 in February, and crossed the 7,000-point and 8,000-point thresholds in May. It climbed above 9,000 on June 18 but has since backtracked to close at 8,088.34 on Friday.
— IANS
Reader Comments
The US-Iran conflict amplifying volatility is a reminder how interconnected global markets are. India’s crude oil imports from Iran make us especially sensitive to such geopolitical risks. Hope our policymakers are watching and planning accordingly.
KOSPI crossing 9000 then falling back to 8000 shows how frothy markets can get. The AI chip supercycle is real but profit-taking is inevitable. For Indian investors, this is a cautionary tale about chasing momentum stocks. 📉
The 1998 Asian financial crisis reference is telling. Korea recovered strongly then, and they will again. But the VI record shows retail investors are being particularly active and emotional. India should take note as our own retail participation surges.
As someone who follows Korean markets for work, this isn’t surprising. Their semiconductor stocks (Samsung, SK Hynix) are driving everything. For India, this is opportunity and risk – we benefit from chip demand but are exposed to any correction in Korean tech stocks.
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