The South Korean stock market has been so turbulent in recent days that expectations for future swings pale in comparison.

The Kospi 200 Index’s implied volatility — a gauge of option prices — has surged with the market selloff, but it’s now looking low relative to the actual moves of late. In fact, the spread between implied and realized volatility has reached its lowest level since August 2024, indicating that hedging against future turmoil appears cheap.