In an article headlined "The World's Craziest Stock Market Has Turned Into a Fright Ride" published on Tuesday, the U.S. newspaper said South Korea, known for producing "Squid Game" and K-pop, now has a stock market showing levels of volatility rarely seen among major economies in recent years.
"South Korea had the world's hottest stock market for most of the past year, powered by the artificial intelligence boom. Then it crashed," it wrote.
It said that the Korea Composite Stock Price Index or KOSPI more than tripled over the past year before plunging about 40 percent over six weeks in June and July. The index has since rebounded roughly 20 percent from its recent low, but sharp daily swings have continued.
WSJ also said that investors have dubbed the market "Rollerkospi," a term coined by combining "roller coaster" and "KOSPI."
It added retail investors, known locally as "ants," a term referring to individual investors who are small in scale but can have a significant influence when acting as a group, have borne much of the pain from the market's volatility.
The newspaper linked the turbulent stock market to President Lee Jae Myung's economic agenda, pointing out that Lee described himself as an "ant" during last year's presidential campaign and pledged to raise the KOSPI to 5,000 by 2030, while his approval rating recently fell to its "lowest level since he took office in June last year."
AJP Takeaways
• WSJ calls South Korea's stock market the "world's craziest," citing extreme volatility after the KOSPI plunged about 40 percent in six weeks in June and July following a yearlong rally.
• Investors have dubbed the market "Rollerkospi," while retail investors known as "ants" have suffered heavily from the sharp market swings.
• WSJ linked the market turmoil to President Lee Jae Myung's economic agenda, noting his KOSPI 5,000 pledge and a recent drop in his approval rating to its lowest level since taking office.
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