Bank of Korea: AI investment slowdown fears raise stock market volatility

The Bank of Korea's explicit link between AI investment sentiment and domestic equity volatility is notable because it frames a global technology narrative as a local financial-stability concern. South Korea's market is unusually levered to semiconductor profitability, so a shift in AI capex expectations transmits directly to household and institutional portfolios. The bank's willingness to name the channel suggests it is watching asset-price effects, not just inflation. Whether this remains a sentiment shock or starts showing up in credit and consumption is the open question.