Goldman Sachs stock strategist: South Korean stock market will rebound after experiencing a "scary" pullback.

Goldman Sachs' chief stock strategist for the Asia-Pacific region, Muting Hui, said that after experiencing a triggered circuit breaker drop, the South Korean stock market is expected to rebound. In the long run, this will prove to be a technical correction, although a scary one in the midst of a long-term bull market. The fundamentals remain very strong. The South Korean Composite Stock Price Index plummeted 8.8% on Monday, leading the decline in Asian tech stocks. This drop occurred after a strong rally driven by optimism in artificial intelligence, with many investors using leverage to chase the gains in a few semiconductor and tech stock sectors. Hui said, "There are clear signs of increasing speculation, especially among South Korean retail investors, who are particularly keen on buying some leveraged ETFs. What we are seeing now is that these accumulated positions are being forcefully sold off, with the leverage exacerbating the decline." Goldman Sachs raised its expectations for the South Korean and Taiwanese stock markets last week, as it is expected that the artificial intelligence wave will drive profit growth in these markets primarily focused on tech stocks. Hui stated on Monday that the valuation of South Korean stocks is very reasonable, and he expects potential profits to continue driving growth.