On June 5, 2026, Chinese media outlet Wallstreetcn reported that leveraged investment in the South Korean stock market, accompanying the artificial intelligence (AI) boom, has reached an all-time high, and the central bank is strengthening its stance on early intervention through interest rate hikes.

The article introduced that while the South Korean stock market, boosted by the AI semiconductor boom, recorded the highest surge among 92 global markets, rising 248% from its low in April last year to June 5 this year, outstanding credit trading balances surged from 25 trillion won (approximately 2.6 trillion yen) at the end of April to a record high of 38 trillion won (approximately 4 trillion yen).

It also pointed out that approximately one-third of the outstanding credit balances are held by seniors aged 60 and over, and many middle-aged and elderly individuals are liquidating their life insurance policies and investing funds into stock accounts, even at the risk of losses. The analysis conveyed that current stock price levels are clearly overvalued, and the market is driven more by emotion than by fundamentals.

Furthermore, it mentioned that in response to the speculative market overheating driven by emotion, Bank of Korea Governor Shin Hyun-Song issued a hawkish signal hinting at an early interest rate hike at his first Monetary Policy Committee meeting since taking office. Governor Shin possesses an academic background specializing in the risk of leverage collapse and holds a belief that emphasizes preventive intervention before a bubble forms. The strong economic data, including South Korea's exports and semiconductor exports in May recording their highest growth and an expanding trade surplus, also supports his stance, the article explained.

The article analyzed that while the current South Korean market is similar to Japan on the eve of its bubble collapse, with concerns that interest rate hikes could trigger a market collapse, South Korea has strong long-term fundamental support from its AI industry, centered around Samsung Electronics and SK hynix. It presented the view that although caution is necessary for a short-term stock price adjustment of 15-20% due to interest rate hikes, quality assets will still have holding value after the turbulence subsides. (Edited and Translated by Kawajiri)