The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Sign in to access this content
Sign InIn a move reflecting the growing dominance of the tech sector in Asian markets, South Korea's KOSPI index has surged driven by robust demand for AI-related memory chips. According to reports, Samsung and SK hynix account for the vast majority of gains realized in the Korean market, leading to extreme concentration. However, record-high leverage and new retail-oriented trading products have significantly increased market instability.
These pressures emerge as historical data shows margin debt in South Korea reaching exceptionally high levels, exceeding 20 trillion KRW in earlier 2024 periods per the Financial Supervisory Service (FSS). Compared to regional peers, the KOSPI faces sharp volatility that has triggered frequent trading halts, which experts attribute to the heavy reliance on the semiconductor sector's performance—a weight much higher than that seen in other indices like Japan's Nikkei 225.
Traders should monitor liquidity levels and volatility in Samsung and SK hynix shares, as instrument prices remain vulnerable to sharp swings from the liquidation of leveraged retail positions. Looking at the economic calendar, upcoming global manufacturing data may impact risk appetite in the tech sector, noting that China's Manufacturing PMI (which stood at 50.6 on June 30, 2026, per market data) suggests relative stability that could influence Korean supply chains.