[Warning Signal Reappears, Korean Stock Hedging Indicator Hits Historical Threshold] Odaily Planet Daily News – The open interest of put options on South Korea's Kospi 200 index has recently surged sharply relative to call options, nearing levels that previously signaled impending market declines. As of the close of the last trading session, the ratio of protective put options used for hedging against declines to speculative call options has approached 2.5 times, marking the highest level in five years. This indicator has only reached this threshold a few times in the past. In July 2007, after the ratio exceeded 2.5, the Kospi 200 index fell nearly 17% within the following month. In January 2021, after crossing this level again, the index dropped more than 5% within three weeks. The strong upward momentum in the South Korean stock market has begun to weaken. Investors are becoming increasingly cautious about AI-related stocks, primarily due to concerns that persistent inflation may force interest rates to remain elevated for a longer period. Arun Singh, CEO of Indicus Capital, stated that the shift in the put-to-call ratio further indicates that global momentum trading is cooling down, with the Korean stock market having been deeply involved in this momentum rally. Even at current levels, hedging to protect existing gains is reasonable, especially in the context of interest rate and inflation expectations being repriced. (Jin10)