Is KOSPI Rising Only on Samsung Electronics and SK hynix?... "When the Concentration Eases, the Bubble Will Burst"

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[Financial News] It has been argued that it is only natural for Korea's stock market to rise on the back of mega-cap stocks such as Samsung Electronics and SK hynix. This pattern, the report said, has repeatedly appeared in the late stages of market bubbles.
Lee Eun-taek, a researcher at KB Securities, said in a report on the 28th, "I expect the concentration in leading stocks to intensify further," adding, "This phenomenon has historically repeated itself in the later stages of bubbles."
Lee pointed to cases of extreme concentration in leading stocks, including △ new technology consumer goods in 1929, such as aviation, telephones and radio △ the Nifty Fifty in 1972, which delivered overwhelming returns △ and dot-com stocks in 2000.
He added, "People often describe this kind of concentration as irrational overheating, but that is a mistaken view," and noted, "At the time, the leading stocks were not simply driven by expectations of future profits; their earnings growth was already very rapid."
Lee said, "Just like semiconductors today, concentration in leading stocks was not irrational overheating but a rational choice at the time," and added, "As a bubble nears its end, concentration tends not to ease but to deepen. This time will be no different."
He went on to say, "History left us one lesson: when this 'relief from concentration' eventually begins, it is not a welcome sign of broadening participation, but an omen of a bubble collapse."
fair@fnnews.com Han Young-joon Reporter