Recent international reports have covered sharp swings in South Korea’s Kospi, the regulator’s response to criticism of market investability and a weak debut for an AI infrastructure company.
Bloomberg reported in July that annualized Kospi volatility exceeded 60% in 2026. The Korea Exchange had triggered circuit breakers nine times through July 31, compared with none in 2025 and one in 2024, Bloomberg reported.
On Aug. 5, South Korea’s Financial Services Commission (FSC) responded to a Bloomberg Opinion column questioning the market’s investability. The commission disputed some of the column’s statistics, saying they did not appear consistent with the facts. On Oct. 15, FSC Chairman Lee Eog-weon convened an emergency market review as the Kospi’s decline continued. The review brought together financial authorities, the Korea Exchange and market experts, according to the FSC. Korea Exchange figures, cited by Aju Press, showed the index closed at 5,554.22, down 7.57%, for a seventh straight session of losses. The FSC cited global rate-hike expectations, uncertainty around AI investment and rising oil prices as factors behind higher volatility. Lee urged financial authorities and related organizations to coordinate their monitoring, the commission said.
Elice Group’s Oct. 6 securities filing set an offer price of 90,500 won for 2,222,000 new shares, raising about 201.1 billion won. The AI infrastructure company began trading on Kosdaq on Tuesday, Oct. 20. Bloomberg reported its shares fell as much as 38% intraday and closed 32% below the offer price. Buyers at the offer price who held through the first session therefore faced a loss relative to their purchase price. Reuters reported that the debut drop revived investor concerns about whether AI spending can be sustained and generate returns.
At an Oct. 9 conference in Hong Kong, ASIFMA’s agenda listed Kimyung Song, president of the KOSPI Market at Korea Exchange, as a keynote speaker on Korea’s capital market reform agenda. The agenda described the reforms as aimed at improving market competitiveness, investor confidence and liquidity.
