South Korea’s stock market skyrocketed to record highs before tumbling over 41% in four months as the AI frenzy fizzled out, wiping off massive sums of investor wealth. While Korean investors count losses, analysts believe Dalal Street can gain from Korea’s pain, but selectively.
The Kospi had skyrocketed over 122% since the beginning of the year to hit a lifetime high of 9,386 in June amid a global AI frenzy, before things began to go downhill. While South Korea’s stock market grabbed headlines as the world’s best performing stock market this year so far, analysts were quick to point out the concentration of chipmakers Samsung Electronics and SK Hynix, which make up just over half of the benchmark Kospi.
