[South Korean Stock Market Plummets, Concerns Arise Over Regulation and Mechanisms] Deep Tide TechFlow reports that on August 4, Bloomberg columnist Shuli Ren wrote on Tuesday that the South Korean stock market recently experienced a sharp decline of nearly 40% within 27 trading days, prompting a reassessment of its investment value. Although Samsung Electronics and SK Hynix continue to benefit from the demand for AI chips, and the valuation of the Korea Composite Stock Price Index remains low, market focus has shifted from corporate fundamentals to trading mechanisms, regulatory capabilities, and policy credibility. She pointed out that the introduction of single-stock leveraged exchange-traded funds has amplified market volatility, with mechanical rebalancing leading to buying during rallies and selling during declines, further undermining market stability. At the same time, a large number of South Korean retail investors, encouraged by previous policies, entered high-risk products and suffered heavy losses after the crash, with young investors being particularly affected. Additionally, the National Pension Service of Korea has been criticized for maintaining a high equity allocation during market peaks, failing to play a counter-cyclical stabilizing role. Overall, the core issue facing the South Korean stock market is not the invalidation of the AI narrative but rather the impact on market rules, fairness, and regulatory credibility, with investor confidence visibly declining.