South Korea’s VKOSPI fell below 40 during trading for the first time since Feb. 12, reaching 39.32 at 1:56 p.m. on Sept. 4, according to the Korea Exchange. The volatility index, derived from KOSPI 200 options and measuring expected annualized volatility over the next 30 days, declined as the semiconductor correction eased, trading rotated into pharmaceuticals, biotechnology, robotics and other sectors, and regulators curbed high-risk single-stock leveraged and inverse products. VKOSPI had surged as the KOSPI rallied above 7,000, 8,000 and 9,000, reaching a monthly average of 68.78 in May and an intraday high of 97.99 on June 29. Authorities’ late-July measures raised margin requirements and delayed recognition of sale proceeds as collateral until settlement, sharply reducing product activity. The market nevertheless remained volatile amid U.S.-Iran conflict, uncertainty over Federal Reserve policy, rising bond yields, oil-price risks and possible yen carry-trade unwinding. Reports differed on the Sept. 4 KOSPI close, citing either 6,703.65 after a 1.89% gain or 6,687.21 after a 1.64% gain.