The Korea AI Mania Is Entering Air Pocket Territory

Korea’s Melt-Up Machine

Korean equities increasingly look like one of the most reflexive AI momentum trades in global markets. Retail leverage, structured products, semis crowding, and now even crypto-native perpetual futures are all feeding into the same upside squeeze dynamic.

The problem with reflexive melt-ups is that they often look strongest right before momentum starts exhausting itself. KOSPI is now flashing several signs that the latest upside panic may be entering increasingly dangerous territory.