South Korea's Kospi rallies - or does it?

• The Kospi closed its best day ever, but remains down on the week and posted its biggest monthly fall since October 2008 (down 22.19% MTD).
• Extreme volatility led to multiple circuit breaker triggers, with heavyweights like SK Hynix and Samsung Electronics seeing massive daily swings.
• South Korean authorities are banning new single-stock leveraged ETFs to curb speculative retail trading and reduce market disorder.
• Despite the volatility, the Kospi's earnings multiples are at a 25-year low, suggesting potential value for long-term investors.

The South Korean Kospi index experienced extreme volatility this week, recording its best day ever but still ending the month down over 20%, marking its worst monthly fall since October 2008. The market's 'Wild West' conditions, driven by leveraged retail trading, have prompted authorities to ban new single-stock leveraged ETFs to temper the rollercoaster ride.