South Korea's Stock Market Plagued by Extreme Volatility

The South Korean stock market has been plagued by extreme volatility in recent days, with the KOSPI index experiencing sharp declines and surges. The VKOSPI index, which measures KOSPI volatility, has reached historic highs, surpassing levels seen since the 2008 financial crisis.

The current situation is attributed to geopolitical uncertainty triggered by the military clash between the U.S. and Iran. As a result, individual investors have become increasingly anxious, with some even comparing the market's movements to those of cryptocurrencies. Online stock-related communities have been filled with posts expressing concerns about the stability of the market.

However, securities firms believe that the recent sharp index fluctuations are merely due to short-term geopolitical shocks and that the fundamentals of the domestic stock market have not been significantly undermined. They recommend a selective approach focusing on growth stocks that have experienced significant declines, despite their high growth potential this year.