The AI boom creates a lot of uncertainty.

Explaining stock market movements is always a little bit of a fool’s errand; no one really understands why stocks boom or crash on a given day or in a given week. Over the long run, the stock market displays lots of “excess volatility” — prices move up and down much more than is warranted by changes in earnings or other measures of fundamental value. There are plenty of theories about why those swings happen, but it’s very hard to know which of those — if any — is in operation at any given time. And so although every big stock market movement is followed by lots of articles claiming to know why, you should take them all — including this one — with several grains of salt.

Anyway, having said all that…

The Korean stock market has been crashing for weeks now. Around March, Korean stocks went on an epic tear; the KOSPI index rose from around 5,000 to over 9,000. Then, just over a month ago, it all went into reverse, with the index falling back to around 5,500:



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