STOCKS | Korea's Hot Stock Market Becomes a National Burden

South Korea has been the world's best-performing stock market this year, but headlines have focused instead on its wild price swings and fervent local investors. According to Sina Finance, the market's volatility has become a national burden. For decades, South Korean stocks have been unusually volatile, partly because retail investors account for a large share of daily trading. This year, volatility has exceeded 60% and briefly approached 100% in the summer, while artificial intelligence companies have helped drive the market higher. The article said South Korean equities still trade at a clear discount to global peers, despite reforms aimed at narrowing the so-called Korea discount. It also said President Lee Jae-myung has pushed market reforms while also taking steps that encourage speculation, including allowing retail investors to buy leveraged ETFs tied to single stocks such as SK Hynix and Samsung Electronics.