Fueled by a surge in AI memory prices, South Korean stocks had been soaring, led by memory giants Samsung and SK Hynix. However, recent international negative developments have triggered severe market volatility, causing significant losses for retail investors using leveraged margin financing.

According to South Korean media reports, the total market capitalization of South Korean stocks has shrunk by 18.6% from early July to the 14th. On June 30, the total market value stood at 7,443.48 trillion KRW (approximately 162 trillion TWD), but by the close on July 14, it had dropped to 6,057.13 trillion KRW (about 131.8 trillion TWD), a staggering loss of around 30 trillion TWD.

Yonhap News Agency reported that South Korea's total stock market value is the sum of the KOSPI (Korea Composite Stock Price Index) and KOSDAQ. Data from the Korea Exchange on the 14th showed that the combined market cap of KOSPI-listed companies was 5,616.75 trillion KRW, while KOSDAQ stood at 440.384 trillion KRW, totaling 6,057.13 trillion KRW — an 18.6% contraction this month.

The report noted that on June 22, South Korea's total market cap reached 7,993 trillion KRW (approximately 174 trillion TWD), nearly touching the 8,000 trillion KRW mark. However, growing concerns over semiconductor demand peaking, combined with renewed geopolitical tensions between the U.S. and Iran, led to a sharp correction. Samsung and SK Hynix, the two semiconductor titans, saw their combined market cap shrink by over 940 trillion KRW this month alone.

The overall South Korean market cap has been hovering around the 7,000 trillion KRW level, and briefly dipped below the 6,000 trillion KRW threshold during intraday trading. The downturn has particularly hit retail investors who borrowed heavily to invest, leading to widespread margin calls.

Additional exclusive reports from Feng Media include:

· South Korean 'retail gamblers' who borrowed to invest face disaster — 400 billion KRW forcibly liquidated amid market crash

· Samsung reports strong earnings, yet stock plummets — Foreign media highlights 'this number' as disappointing: Investors deeply unsatisfied

· 'Worst memory shortage ever' to hit next year? SK Hynix CEO warns: Supply-demand imbalance will remain unresolved beyond 2030

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  • Source: PR Times
  • Category: News
  • Products / services: DRAM