"The AI backlash could bring down South Korea first"... The Economist says "capitalism and speculation are intertwined"

The Economist says South Korea may be among the first markets hit by the unwind of the AI investment boom.

A market dominated by Samsung Electronics and SK Hynix, plus heavy leverage among retail investors, helped magnify the recent selloff.

It warned that slowing memory chip demand and rising competition from Chinese chipmakers could add further downside.

The episode highlights how exposed Korea’s stock market is to a shift in AI sentiment.