Lyons: Volatility in South Korean stocks is out of control, with a large number of retail investors participating

```htmlJinse Finance reported that on June 23, after Korean regulatory authorities issued signals of overheating in the chip sector, overseas investors began selling stocks. CLSA Chief Equity Strategist Alexander Redman stated that the correction highlights increased market volatility, and critics are concerned that the market has become overextended and risks are rising. "Volatility has gone out of control. Such volatility can't be explained without a large number of retail investors participating," Redman said. "What worries me is that retail investors are dominating the market because they use a lot of margin, even though its proportion to market value is small. More concerning is that regulatory authorities now allow leveraged single-security ETFs, which exacerbates the issue further." The head of Korea's market regulatory authority commented that the government was too hasty in approving leveraged funds tied to several well-known Korean chip stocks; these funds were launched last month and have intensified market volatility. Korean regulatory authorities recently warned retail investors not to use leverage in the market, as the amount of margin debt or financing used to purchase stocks reached an all-time high in June.```