South Korea’s main stock exchange has postponed the launch of weekly options linked to some of the country’s largest companies, citing heightened market volatility as retail-driven trading activity fuels sharp swings in local equities, according to a report by the FT.

The Korea Exchange had planned to introduce weekly options on Samsung Electronics, SK Hynix, Hyundai Motor and LG Energy Solution on 29 June. However, the exchange said it would delay the rollout after recent market turbulence, including consecutive trading sessions that saw the benchmark Kospi fall 8% and then rebound by a similar amount.

The move comes as regulators grow increasingly concerned about speculative activity in South Korea’s equity market, which has been one of the world’s best performers this year amid an AI-driven rally in semiconductor stocks. Samsung shares have more than doubled since the start of the year, while SK Hynix has risen more than fourfold.

Regulators have also expressed concerns over leveraged single-stock ETFs tied to the chipmakers, with some products experiencing significant pricing distortions during periods of extreme volatility.

The delay highlights growing efforts by South Korean authorities to balance investor demand for increasingly sophisticated trading products against concerns that excessive speculation could further amplify market swings. Retail participation remains at record levels, with margin debt reaching an all-time high and volatility indicators for the Kospi also hitting unprecedented levels.

The Korea Exchange said it intends to proceed with the launch once market conditions stabilise and institutional preparations are complete.