IMF Warns Korea's AI-Heavy Stock Market Faces Heightened Risks

The IMF's October 2026 Global Financial Stability Report flagged excessive concentration in AI-related assets as a major risk, singling out South Korea as especially vulnerable. The KOSPI's beta to AI stocks is about 0.8, above the US, Japan and the eurozone, and the index fell 34.5% from the start of H2 through Oct. 15.

• KOSPI's beta to AI stocks is about 0.8, above the US, Japan and eurozone
• KOSPI fell 34.5% from the start of H2 through Oct. 15
• AI stocks' share of major leveraged ETFs rose from 16% to 28%
• IMF raised Korea's 2026 growth forecast to 3.3% but flagged concentration risks