STOCKS | South Korean Stock Market Faces Pressure Amid Rising Risks

South Korea's stock market, valued at $4.9 trillion, is showing signs of pressure after a period of strong global performance. According to Jin10, while the KOSPI index reached a record high on Tuesday, only 2.6% of stocks hit a 52-week high, whereas 31% fell to a 52-week low. Retail investor enthusiasm is waning, and the surge in margin loans faces potential risks from a possible interest rate hike by the Bank of Korea in July. As various risks accumulate, investors warn that if the market turns downward, the decline could be as rapid as the previous rise. "Currently, I am more concerned about the signs of overheating in market positioning than a deterioration in fundamentals," said Ha Seok Keun, Chief Investment Officer at Eugene Asset Management. "I expect the market to enter a period of increased volatility and consolidation over the next one to two months."