‘I lost $14,000 in a month’: Investors hit by Korean stock market’s wild swings
South Korean retail investors have suffered sharp losses after a dramatic fall in technology shares, particularly those linked to the artificial intelligence boom. The volatility of the tech-heavy Kospi index has hit people saving for major life events, including bank worker Yongjoon Kim, whose investments for a future home fell by 20 million won in July.
The Kospi rose above 9,000 points in mid-June after more than doubling since the start of the year, before dropping to 5,500 within weeks and later recovering to about 6,800. Concerns about heavy AI spending helped trigger the sell-off, while borrowing to invest increased losses: an estimated 1.2 million personal investor accounts faced margin calls by the end of July.
- Korean tech investors face heavy losses after Kospi volatility.
- AI spending concerns drove a sharp market sell-off.
- Borrowed investments exposed millions to margin calls.
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South Korea’s Kospi is the country’s main stock market index, tracking shares in major listed companies. It includes many technology firms, such as chipmakers and electronics groups, so it can move sharply when investors change their expectations about the global technology sector.
Many South Koreans invest directly in shares alongside saving through banks or pensions, sometimes using borrowed money to increase the size of their bets. This can raise potential gains, but it also makes losses larger when prices fall and may force investors to sell if their accounts no longer meet lenders’ requirements.
The recent swings have focused attention on companies connected to artificial intelligence, where investors have been weighing high spending on data centres and chips against the prospect of future profits. The changes matter beyond professional traders because household investors may be using these investments for goals such as housing, education or retirement.