After experiencing the “roller coaster” market in July, the South Korean stock market faced a fierce clash of long and short this month. After two consecutive days of rebound, Korea's KOSPI Index closed down 4.58% to 6296.38 points on August 6, and SK Hynix's stock price plummeted 10%. The intraday Korea Exchange launched the KOSPI Index “sidecar” mechanism and suspended programmatic sales for 5 minutes. After the index peaked on June 19, the KOSPI index experienced a round of deep retracement of nearly 40%. This volatile storm caused by leveraged products on individual stocks forced South Korea's regulators to introduce multiple rounds of measures within a month. According to institutional analysts, in the short term, the most dangerous leverage structure in the sharp decline may have basically been cleared. The short-term cooling effect has initially been achieved, and foreign capital has also begun to return in stages. However, the single-day liquidation rate of retail investors is still high, and the volatility index remains high. Underlying risks have not yet been fully cleared, and it will take time for the market to actually stabilize.

After experiencing the “roller coaster” market in July, the South Korean stock market faced a fierce clash of long and short this month. After two consecutive days of rebound, Korea's KOSPI Index closed down 4.58% to 6296.38 points on August 6, and SK Hynix's stock price plummeted 10%. The intraday Korea Exchange launched the KOSPI Index “sidecar” mechanism and suspended programmatic sales for 5 minutes. After the index peaked on June 19, the KOSPI index experienced a round of deep retracement of nearly 40%. This volatile storm caused by leveraged products on individual stocks forced South Korea's regulators to introduce multiple rounds of measures within a month. According to institutional analysts, in the short term, the most dangerous leverage structure in the sharp decline may have basically been cleared. The short-term cooling effect has initially been achieved, and foreign capital has also begun to return in stages. However, the single-day liquidation rate of retail investors is still high, and the volatility index remains high. Underlying risks have not yet been fully cleared, and it will take time for the market to actually stabilize.