Nordea Asset Management: The sell-off in the South Korean stock market has irrational components

According to Jinshi reports, Gina Kim, the emerging markets equity portfolio manager at Nordea Asset Management in Singapore, stated that the current sell-off in the South Korean stock market seems to have irrational and panic-driven components, primarily focused on technology stocks related to artificial intelligence.

Some of the sell-off behavior can be reasonably explained, such as reducing risk before the summer vacation, margin requirements, and recent news reports regarding the sustainability of capital expenditures in artificial intelligence. Due to single stock limits rather than fundamental reasons, the company has reduced some of its larger technology stock holdings.