The KOSPI 200 Volatility Index (VKOSPI), often referred to as the Korean fear index, surged to another record high on June 29.
As of 10:00 a.m. today, the VKOSPI stood at 97.40, up 5.06% from the previous trading session.
The index jumped 5.70% immediately after the market opened, reaching a high of 97.99.
This level significantly exceeds the 83.58 recorded on March 5 of this year, immediately following the outbreak of the war involving Iran, and marks the highest level since the Korea Exchange began officially publishing the index on April 13, 2009.
However, historical VKOSPI data collected prior to the official publication shows that the index reached an intraday high of 103.05 on October 29, 2008, during the global financial crisis.
Market analysts attribute the heightened volatility to supply and demand imbalances caused by single-stock leveraged ETFs for Samsung Electronics and SK Hynix, as well as renewed noise surrounding the U.S.-Iran conflict over the weekend.
Han Ji-young, an analyst at Kiwoom Securities, explained, "News of retaliatory airstrikes and counterattacks between the U.S. and Iran emerged over the weekend," adding, "Apple's product price hikes and other factors are also creating noise, further exacerbating market confusion."
This suggests concerns have arisen that hyperscalers, including Apple, which operate large-scale AI data centers, may reduce investments if they cannot absorb rising memory prices.
In particular, as Samsung Electronics and SK Hynix account for a significant portion of the domestic stock market, doubts regarding these stocks are interpreted as a factor driving increased volatility.
The VKOSPI is an annualized indicator of the expected 30-day volatility reflected in KOSPI 200 option prices.
Because it calculates the volatility of the KOSPI 200 with a 30-day remaining maturity using settlement month items listed in the KOSPI 200 options market, higher option prices are interpreted as market participants anticipating greater potential for price fluctuations in the KOSPI 200.
The KOSPI is currently trading in the 8,200 range, showing a decline of over 1%.
(Photo: Yonhap News)