"South Korea Has Become the World's Most Unstable Gambling Den" Korean Stocks Swing 8% in a Day

[Financial News] Even as domestic companies are posting solid earnings, criticism has emerged that the South Korean stock market has been exposed to excessive volatility, with daily swings of as much as 8%. Economic commentator Park Si-dong said the government needs to send messages that can restore market trust, and advised investors to avoid panic selling.
Appearing on the YouTube channel "Kim Eo-jun's News Factory: Humility Is Hard" on the 21st, Park said the domestic economy and corporate earnings themselves are not in a shaky state. He said, "The big ship called the Korean economy is not going in the wrong direction, and companies are not going in the wrong direction either. Money is being printed right now, and companies are making good profits."
Park said the problem lies in the stock market's excessive volatility, apart from corporate earnings. He criticized the situation, saying, "The problem is that enormous volatility has made it the world's most unstable gambling den," and added, "Stock markets in other countries move about 1% to 2% a day, but in South Korea, swings of 8% a day are being repeated."
He also warned that if the share prices of Samsung Electronics and SK hynix swing sharply, it could affect not only the domestic market but also foreign investors' perceptions.
Park also stressed the symbolic importance of the two companies in the market. He explained, "Samsung Electronics and SK hynix are key companies leading the AI era," and "if their stock prices fluctuate sharply, foreign investors may interpret it as a problem with the companies themselves."
He also argued that the government should send signals to stabilize the market. Park said, "It is regrettable that even though people keep shouting that there are problems in the market, no proper measures or messages that can restore trust are being issued," and added, "Asset markets ultimately move on trust."
He again called for government messages to ease market anxiety. Park said, "Once trust is restored, the market can stabilize at any time," and added, "It is important for the government to send signals that can reassure the market."
He also urged individual investors to avoid selling without a principle during sharp declines. He advised, "The most important thing in stock investing is to survive in the market for a long time," and "You should set in advance the level of loss you can tolerate and respond according to your principles. Panic selling driven by fear is the one thing you must avoid."



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