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Home/News Feed/South Korea's AI-driven stock surge faces risks from high leverage and weak real-world returns.
EWY
$180.00
+$1.23 +0.69%

South Korea's AI-driven stock surge faces risks from high leverage and weak real-world returns.

Market News
13 Aug 2026
Seeking Alpha
View Source
Bearish
pluang ai news

South Korea's stock market, especially KOSPI and EWY, is highly leveraged and vulnerable despite bullish AI-driven sentiment. Leverage in AI and memory stocks has risen since March, increasing the risk of forced selling and market crashes like the one in July. The AI optimism is challenged by weak real-world returns, with less than 25% of enterprise AI projects fully deployed and successful. The analyst remains bearish, seeing greater downside risks due to narrative-driven valuations and structural market weaknesses.

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