Korean stock market volatility is the highest since the Asian financial crisis in 1998

THE KOREAN STOCK MARKET HAS BENEFITED MOST, ACCORDING TO THE NEWS OF 13 JULY, DRIVEN BY AN ARTIFICIAL INTELLIGENCE BOOM. AT THE SAME TIME, THE CURRENT VOLATILITY OF THE KOREAN STOCK MARKET HAS REACHED ITS LEVEL AT THE HEIGHT OF THE ASIAN FINANCIAL CRISIS IN 1998. THE DATA SHOW THAT AN INDICATOR MEASURING PRICE VOLATILITY ON THE MSCI SOUTH KOREA INDEX FOR 60 DAYS HAS RISEN TO ITS HIGHEST LEVEL SINCE FEBRUARY 1998 AND EVEN EXCEEDED THAT OF THE 2008 GLOBAL FINANCIAL CRISIS. PRIOR TO THIS, THE MSCI SOUTH KOREA INDEX, WHICH WAS HISTORICALLY HIGH, WAS DRIVEN BY FANATICAL TRANSACTIONS AND SIGNIFICANT LEVERAGE, AND IS NOW 28 PER CENT HIGHER THAN IT WAS IN JUNE, FALLING BY 10 PER CENT ON MONDAY, BACK TO ITS LEVEL MORE THAN TWO MONTHS AGO。