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2026-07-15 12:42:11
[Extreme Market Movements in South Korea Reflect the Risks of "Emotional" Investment] The Korea Composite Stock Price Index (KOSPI) opened sharply higher on the 15th, rising by 7% before the Korea Exchange (KSE) initiated a temporary trading halt due to sharp fluctuations in KOSPI 200 futures. This year, the KSE has initiated temporary trading halts 36 times, and the KOSPI has triggered circuit breakers seven times due to sharp declines. Recently, the KOSPI entered a technical bear market, experiencing a rollercoaster-like price swing on the 14th after a circuit breaker was triggered the previous trading day, resulting in a sharp V-shaped reversal and a closing gain. Observations reveal that the extreme movements in the South Korean stock market reflect the significant risks of "emotional" investment: when market expectations are continuously strengthened, stock market gains far exceed the support of economic fundamentals; however, once confidence wavers, a sharp decline ensues. For South Korea, AI and semiconductors remain strategic industries with strong international competitiveness. However, when policy support, industrial capital, and household wealth allocation simultaneously "bet" on a single sector, market expectations are amplified, leading to extreme market risks. Analysts point out that the real challenge in the future lies in how the government can strengthen investor education and guidance, ensuring that investment returns to industry value and economic fundamentals. (Xinhua)
