The sharp swings have unsettled investors and regulators alike, with market movements increasingly driven by leveraged investment products rather than corporate fundamentals. The volatility has also complicated the assessment of South Korean equities, particularly as the country remains a critical supplier of AI-related semiconductor technology.

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…

China has taken deleveraging actions amid wake-up call from South Korean market volatility.