{
  "id": 332081,
  "title": "South Korea volatility spike ebbs as leveraged trades are flushed out",
  "url": "https://urgent.news/2026/08/09/south-korea-volatility-spike-ebbs-as-leveraged-trades-are-flushed-out",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-09T01:05:00.000Z",
  "source": {
    "name": "Straits Times Business",
    "slug": "straits-times-business",
    "url": "https://www.straitstimes.com/business/south-korea-volatility-spike-ebbs-as-leveraged-trades-are-flushed-out"
  },
  "original_language": "en",
  "account": "South Korea's stock market turmoil may have peaked as extreme volatility subsides following a significant sell-off that forced out leveraged positions and tightened regulations on risky products. The Kospi Index, which fell almost 40% from its June high, saw its most recent volatility gauge drop to a two-month low in July. Forced liquidations and regulatory curbs on leveraged exchange-traded funds reduced outstanding margin debt and trading activity in products tied to Samsung Electronics and SK Hynix. While the deleveraging process is more than half complete, volatility remains elevated, leaving investors cautious. Some experts believe the market's cheap valuations and strong earnings outlook could eventually justify the risks, but market participants are hesitant until there is evidence that the market's price discovery mechanism is functioning normally again.",
  "summary": "Surging turbulence in the Kospi drove a volatility gauge to a record-high 96.9 in June.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "Fortune",
        "title": "The SEC should ban the products behind South Korea’s recent market meltdown",
        "url": "https://urgent.news/2026/08/06/the-sec-should-ban-the-products-behind-south-koreas-recent-market",
        "published": "2026-08-06T07:00:00.000Z"
      },
      {
        "outlet": "CNBC World",
        "title": "From birth to brokerage: Why South Korea is seeing a surge in infant investment accounts",
        "url": "https://urgent.news/2026/08/06/from-birth-to-brokerage-why-south-korea-is-seeing-a-surge-in-infant",
        "published": "2026-08-06T23:42:20.000Z"
      },
      {
        "outlet": "The Business Times - Companies & Markets",
        "title": "Why South Korea’s stock index is more volatile than Bitcoin",
        "url": "https://urgent.news/2026/08/09/why-south-koreas-stock-index-is-more-volatile-than-bitcoin",
        "published": "2026-08-09T08:35:37.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}