A four-day rout in Korean semiconductor shares erased $900 billion in market value amid record retail margin debt of $25 billion.
South Korea’s chip-heavy Kospi plunged nearly 10% in its worst session in years, wiping out over $900 billion in equity value. SK Hynix and Samsung Electronics both fell more than 12%, with the selloff amplified by record margin debt of $25 billion as of May.
The decline follows a period of aggressive retail positioning, with Korean investors piling into the rally before the reversal. Despite the sharp drop, AI-related spending signals remain strong, including Oracle’s $638 billion backlog and Broadcom’s 143% surge in AI semiconductor revenue.
Market observers suggest the selloff reflects a positioning unwind rather than a collapse in AI demand, though Micron’s earnings report tonight will serve as the first major test of memory demand trends.