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South Korea's AI Rally Fuels Everyday Investors

Wall Street Journal Markets •
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South Korean software developer Na Se‑bin has sunk roughly $47,000 of her savings into equities since January, chasing the AI‑driven rally that has lifted tech firms across Seoul, Taipei and Tokyo. The 24‑year‑old says her portfolio can swing from a month’s salary gain to an equal loss in a single second, underscoring the market’s volatility amid heightened media hype and social chatter.

Over the past 18 months South Korea has emerged as the world’s best‑performing stock market, a status that has pulled in not only seasoned investors but also cab drivers and schoolchildren. Na notes that colleagues joke about selling underwear to buy more shares, while friends with no prior trading experience are now opening accounts, illustrating how the AI boom has broadened market participation as the nation watches the rally.

The frenzy has tangible effects on liquidity and price swings, forcing brokers to upgrade risk controls and prompting regulators to monitor speculative inflows. With AI‑related earnings forecasts soaring, investors chase momentum rather than fundamentals, raising concerns about a potential correction. The episode shows how a single technology theme can reshape trading behavior across an entire economy for both retail and institutional players.