As investors digest the potential impact of artificial intelligence and debate whether this new technology will help or destroy existing businesses, a sharp divergence is occurring in global equities.

US stocks, which for years received strong, steady foreign money inflows, have experienced sharp selloffs lately as fear of AI’s disruptive power dragged down shares of software and services companies. By comparison, South Korea, one of the world’s most notorious value traps, has managed to ride through all those jitters and now repeatedly breaks records. The blue-chip Kospi Index is up 44% this year after 2025’s 76% spectacular run.

© Bloomberg