On the 9th, during early trading after the market opened, a program sell order triggered a temporary suspension of trading (sidecar) due to volatility in the KOSPI 200 futures index. This was the first sell-sidecar on the KOSPI market in three trading days since the 4th, and the third this month. [Photo=Yonhap News]

Financial market volatility is rapidly expanding due to soaring international oil prices and continued won depreciation. 

Amidst geopolitical instability in the Middle East and global capital movements, the Korean stock market has also been significantly shaken. The market's unease is growing rapidly with continuous selling by foreign investors and a surge in the exchange rate.

The Korean stock market is structurally volatile. 

Although individual investors account for a high proportion of trading, the index's direction is heavily influenced by the supply and demand of foreign and institutional investors. When global capital flows change, the Korean market is one of the first to be impacted.

There is another characteristic added to this. It is a market with a high volume of margin trading. 

With outstanding margin loans exceeding 30 trillion won, a significant market downturn can erode the collateral ratios of leveraged investment accounts, increasing the pressure for forced selling (reverse trading). 

In a market with increased volatility, a flood of forced liquidation orders can create a structure where the decline is further amplified. This is a mechanism that has been repeatedly observed in financial markets for a long time.

What individual investors often refer to as a "shakeout" also occurs during this process. At moments of market turmoil, leveraged investors are the first to be pushed out of the market, and as the decline widens, individual investors repeatedly suffer larger losses.

The problem lies in statements made by the President, who should be aware of such market structures.

The fact that the President conveyed a message to the public to "sell your house and invest in Exchange Traded Funds (ETFs)" was shocking to many. 

This is because the President's words are interpreted not as personal opinions but as policy signals.

ETFs are passive investment products that track an index, rather than products that involve analyzing and investing in specific companies. 

When individual funds flow into ETFs, they ultimately head to large-cap stocks included in the index, and their prices are determined by the supply and demand of foreign and institutional investors. Individual investors become participants integrated into a market structure driven by foreign and institutional players, rather than being its architects.

The essence of the problem is not ETFs. It is the very fact that the President has begun to dictate investment direction in the stock market to the public.

Fundamentally, the stock market is not a market that the government can design or control. 

It is a market driven by a multitude of immense variables, including global capital flows, politics, exchange rates, energy prices, international conflicts, and financial policies. 

Within this structure, the language of power cannot help but be interpreted as market signals rather than mere opinions.

It is not that past governments were less competent than the current one in stimulating the stock market. 

This is because the stock market is not a market that moves with the President's will. A bull market is created when global capital flows, macroeconomic variables, and the international political environment align, and the market reacts coolly when they do not.

Hankyoreh, in its stock market analysis, has consistently pointed to the so-called 'Trump variable'. 

From the geopolitical situation in the Middle East and Iran issues to tariff policies and trade pressures, and global capital movements, the policy direction of U.S. President Trump remains a variable that directly impacts international financial markets. 

Ultimately, the stock market moves within the flow of global politics and capital.

Ignoring these variables and solely encouraging domestic investment sentiment will inevitably lead to risks being borne by individual investors.

The stock market is not a market that the government can control. In that market, individual investors are always in the weakest position. This is precisely why the President's remarks must be more cautious.

The moment the President speaks as if they can sway the stock market, their words become not investment advice but a market signal. And individual investors ultimately bear the risks of that signal.

The current state of the KOSPI is a reality created by the President's reckless confidence.