South Korea Sounds Alarm on Stock Market Bubble Amid Retail Boom
- Government says individuals could suffer losses on volatility
- Comment follows 137% jump in preferred stock before delisting
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South Korea issued a warning over signs of a bubble in the nation’s stock market, one of the world’s top performers this year amid a record surge in retail investing spurred by easy money and pandemic free time.
“It’s true that signs of an unstable bubble have been seen in the stock market under the current excessive liquidity situation,” said Kim Sang-jo, the country’s chief policy secretary, at a parliamentary hearing Friday. “Individual investors with a lack of investment knowledge could suffer losses in the future.”