South Korea's Kospi index more than doubled to top 9,000 points by mid-June before plunging to 5,500 within weeks, then partially recovering to around 6,800, in what analysts call one of its sharpest corrections ever. Bank worker Yongjoon Kim lost about $14,000 in tech investments meant to fund a home purchase, while others describe losses in the tens of thousands after leveraging bets on chipmakers like SK Hynix and Samsung.
By the end of July, an estimated 1.2 million South Korean personal investor accounts had faced margin calls, roughly one in every 30 working-age adults, as leveraged trading tied to AI-stock euphoria backfired. Analysts attribute the sell-off partly to concerns over massive AI spending.
Analysts note the volatility is concentrated in tech-heavy indexes like the Kospi and Japan's Nikkei, and is less likely in more diversified markets such as the US or Tokyo indexes. Several investors interviewed say they plan to hold their shares and wait for a rebound rather than sell at a loss.
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