Korean Stock Market Volatility Intensifies: VI Triggered 6,646 Times in October, Year-to-Date Total Hits Record High

Odaily Sees News: Data from the Korea Exchange shows that the Volatility Interruption (VI) mechanism was triggered 6,646 times in the Korean securities market in October, roughly 1.8 times the average level of August and September. As of October this year, the VI has been triggered a cumulative 53,372 times, already surpassing the all-time record of 35,523 set in the full year of 2020.

Meanwhile, the KOSPI's average daily volatility rose to 3.58% last month, a notable rebound from 2.07% in September. As of 10:40 a.m. on November 4, the KOSPI 200 Volatility Index (VKOSPI), known as South Korea's "fear index," stood at 55.68, marking its fourth consecutive trading day of gains. The index briefly climbed above 80 in late July this year, then fell back to the 30-plus range in early last month. However, as concerns over AI profitability resurfaced last month, the VKOSPI has recently risen above 50 once again.

Kang Hye-seong, a researcher at Sangsangin Securities, said: "In the process of digesting the third-quarter earnings season, global semiconductor stocks fell sharply, which also drove a synchronized rise in volatility in the Korean stock market." He further stated that investor sentiment may be difficult to fully improve until the profit models of AI frontier companies become clearer and the revenue and cash flow of large cloud service providers (Hyperscalers) are confirmed. (Yonhap)