South Korea's KOSPI Hits 60.3% Gain This Year; Central Bank Expects Volatility from External Factors on July 29

According to the Bank of Korea's report submitted to Parliament on July 29, KOSPI rose 60.3% year-to-date, outperforming major markets including Taiwan, Japan, the U.S., and Europe. The central bank expects the domestic stock market to remain sensitive to external factors such as AI investment trends and major economies' monetary policy shifts, though strong corporate fundamentals are expected to limit downside pressure.

The Volatility Index for KOSPI (V-KOSPI) averaged 85.3 this month, surpassing its November 2008 level (70.3) during the global financial crisis and hitting record highs. Circuit breakers have triggered 7 times and side cars 41 times since May, as large-scale foreign net selling and increased leveraged investment continue.