KOSPI Faces Volatility From Excessive Leverage Structure, Samsung Earnings on July 7 Key Variable

According to iM Securities, South Korea's KOSPI index on July 6 is experiencing heightened volatility stemming from an inverted leverage structure, where retail investors' use of borrowed funds exceeds underlying investment capacity. Analyst Kim Jun-young noted that even minor market shocks trigger large-scale forced selling, amplifying downturns. A semiconductor-led rally is expected to persist amid ongoing AI demand.

Large swings in the yen and dollar-won exchange rate may influence foreign investor flows, Kiwoom Securities research indicated. Samsung Electronics' provisional Q2 earnings release on July 7 could provide a turning point; if results ease market concerns, the index may recover despite deleveraging pressures.