Kospi Plunged 39% From 9,000 Peak as AI Swings Triggered 1.2 Million Margin Calls
Updated
Updated · BBC.com · Aug 13
Kospi Plunged 39% From 9,000 Peak as AI Swings Triggered 1.2 Million Margin Calls
3 articles · Updated · BBC.com · Aug 13
Summary
South Korea’s tech-heavy Kospi fell from above 9,000 in mid-June to 5,500 within weeks before rebounding to about 6,800, one of its sharpest corrections on record.
AI-driven chip stocks fueled both the surge and the sell-off, with worries over massive artificial-intelligence spending reversing months of euphoria in Samsung and SK Hynix.
1.2 million retail investor accounts had faced margin calls by end-July, reflecting how borrowed bets amplified losses after many individuals piled into tech shares.
Personal investors described losses of $10,000 to $14,000 and wiped-out paper gains, with some saying the volatility felt closer to gambling than rational investing.
The swings are rippling into other tech-heavy markets such as Japan’s Nikkei 225, though strategists say broader indexes in the US and Japan are less exposed.