WSJ's 'Squid Game' Warning and the NATO Summit Wildcard
The Wall Street Journal warned Korea's market could turn into a 'Squid Game,' citing concentration in Samsung and SK Hynix, volatility from leveraged products, and foreign capital flight. Panelists partly agreed on the outflow point but stressed that while Japan's Nikkei, Hong Kong's Hang Seng and Taiwan's index fell only about 1% in the same session, the Kospi's 6% plunge reflected domestic ETF and leverage mechanics amplifying the impact far more than actual foreign selling volume warranted.
President Lee Jae-myung is set to attend the NATO summit in Canada, where President Trump is also expected, with defense spending likely a key topic. Given that Canada's submarine contract decision was announced just before the summit, panelists flagged the possibility that Korea could use the summit to engage Canadian PM Mark Carney and pursue further defense and economic cooperation opportunities.