South Korea's AI stock boom is now a cautionary tale of leverage's power. SK Hynix's plunge triggered billions in stock sales, deepening the Kospi's slide. Leveraged products and concentrated index weightings amplified market swings in both directions. This dynamic is now being watched globally as Korea is central to the AI hardware supply chain. Regulators are monitoring the situation and considering additional measures to curb volatility.

SK Hynix shares swing in Seoul as an AI memory selloff wipes $1.5 trillion from semiconductor market caps, even as the company's US ADR IPO prices above

South Korea's KOSPI has entered bear market territory after falling about 25% from its late-June record high, following a spectacular AI-driven rally. Reuters said the correction…