Volatility in South Korea’s stock market has sharply increased as geopolitical tensions in the Middle East heightened uncertainty in global financial markets.

According to financial industry data, the intraday fluctuation rate of the KOSPI on March 4 reached its highest level in about six years. The benchmark index showed extreme movement within the day as the gap between its intraday high and low widened significantly.

The intraday volatility rate is calculated by dividing the difference between the highest and lowest index levels by their average value. A higher figure indicates that the market moved sharply up and down during a single trading session.

Analysts noted that the recent volatility was comparable to levels seen during major global crises such as the 2008 financial crisis and the 2020 COVID-19 pandemic.

During the sharp market swing, the gap between the KOSPI’s highest and lowest points exceeded 600 points, highlighting strong investor anxiety. However, the volatility eased slightly the following day as the market regained some stability.

The “VKOSPI,” often referred to as Korea’s fear index, also remains elevated. Although it retreated slightly, the index is still significantly higher compared with the beginning of the year.

The KOSPI had recently surpassed the 6,000-point level for the first time, but escalating tensions between the United States and Iran triggered dramatic swings in the market.

After a sharp decline, the index later rebounded strongly, posting a gain of more than 9 percent in a single day. This marked the largest point increase in the history of the KOSPI and one of the strongest daily gains since the global financial crisis.

Market experts say geopolitical risks could continue to drive volatility in financial markets for the foreseeable future.

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