The most extreme phase of South Korea's stock-market turmoil may be over after a historic selloff flushed out leveraged positions and regulatory curbs sent trading in some of the riskiest products plunging.

Bloomberg Markets reports that the volatility spike, which rattled investors across Asia, has begun to subside as margin calls and forced liquidations cleared speculative excess from the market.

Regulators stepped in with tighter oversight on derivative instruments, particularly in sectors heavily exposed to short-term leverage. Trading volumes in high-risk ETFs and options contracts fell sharply, reflecting both investor caution and reduced speculative activity.

Market participants suggest that while sentiment remains fragile, the sharp correction has restored some balance to valuations. Analysts note that the cleanup of leveraged trades has reduced the likelihood of further dramatic swings in the near term.

The Kospi index, which dropped over 8% at its lowest point during the turmoil, has since stabilized. Investors are now watching Seoul for signs of renewed confidence, while global funds reassess their exposure to South Korea's equity markets.