# South Korea market turmoil eases after leveraged trades unwound 2026-08-09T02:05:28+00:00 | World & Diplomacy | Indian Opinion Desk Corroboration: 1 independent outlet South Korea's stock market volatility has fallen to a two-month low from a record high in June, suggesting the worst of the selloff may be over. Forced liquidations and tighter rules on leveraged ETFs have flushed out many retail investors, with margin loan balances hitting their lowest this year. The Kospi Index saw a drawdown of almost 40% from its June peak. Global funds have sold over $100 billion of shares this year, leaving emerging-market funds underweight on the country. Morgan Stanley estimates the deleveraging process is more than half over, but overseas money managers are not rushing back. Volatility remains elevated, and global funds sold another $4.3 billion in August after a record $30 billion in June. Some, like Goldman Sachs, are bullish, reiterating a 12-month Kospi target of 12,000, an upside of around 90%. Others are waiting for calmer trading days and evidence that price-discovery mechanisms are working normally. ## Coverage - livemint.com - ndtvprofit.com Tags: foreign funds, Kospi, leveraged trades, South Korea, stock market, volatility Canonical: https://indianopinion.org/south-korea-stock-turmoil-eases-after-leveraged-trades-unwound/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/south-korea-stock-turmoil-eases-after-leveraged-trades-unwound/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.