Global Market: AI boom turns turbulent as South Korea stocks slide into bear market

South Korea's KOSPI has officially entered bear market territory, falling about 25 percent from its late-June record closing high of 9,114.55 and trading below the 7,000 mark, despite remaining the world's best-performing major equity market with around 60 percent year-to-date gains. The sharp reversal follows a spectacular AI-led rally driven by semiconductor heavyweights Samsung Electronics and SK Hynix, which together account for just over half of the index weighting, raising concerns about market concentration risk. Foreign investors have pulled out a record nearly 110 billion dollars from South Korean equities this year while retail investors, who had aggressively used margin financing, now face amplified losses amid heightened regulatory scrutiny on leveraged products.