South Korea's stock market has been on a turbulent ride, with the tech-heavy Kospi index experiencing one of its sharpest corrections in history between June and August. The index, which had more than doubled from the start of the year to peak above 9,000 points in mid-June, plunged to 5,500 within weeks before recovering to around 6,800 points.

This volatility has hit retail investors hard, many of whom had poured savings into technology stocks amid a global frenzy around artificial intelligence. Bank worker Yongjoon Kim lost 20 million Korean won ($14,000) last month on tech investments that slumped by about 25% in July. The money was intended for a home purchase ahead of his wedding later this year.

"It's going to sting and I'm going to have to work really hard to make up for this," Kim said. "But for others who have taken more risk, they're going to feel the pain."

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Many of his friends are in a "desperate" situation after going "all in" with their savings, he added.

The sell-off has been particularly acute for those using leverage, which amplifies gains but also losses. By the end of July, an estimated 1.2 million South Korean personal investor accounts had faced margin calls, equivalent to about one in every 30 working-age adults.

Woongsa Kim, who invested about half of his work bonus in SK Hynix shares at the start of the year, saw the stock quadruple before most gains were wiped out. His investment, now worth about 300 million won, is roughly half its peak value. "Thinking about it just brings tears to my eyes," he told the BBC.

Chanyong Park, who works in marketing, put most of his profits from Nvidia shares into SK Hynix, but that bet has fallen by around $10,000. "This was money I'd invested to save before planning to leave my job around October to start my own business. But now I'm seriously wondering whether I'll have enough," he said.

Another investor, Youngji Park, said he went "all in" on Samsung shares that peaked at 45 million Korean won but have since suffered a "gut-wrenching" slump. He plans to hold on, saying, "I feel like a fool for trusting the Korean stock market. It's a long-term game now. I'll just have to wait it out."

College student Soomin Yi pooled money with a friend to invest in SK Hynix after experiencing "fomo" (fear of missing out). She regrets not selling when shares peaked in June. "We didn't really have anyone around us who is experienced in investing, and we did not study investing seriously before buying the stock," she said.

The Kospi's swings are also raising concerns about other markets. Tech-heavy indexes like Japan's Nikkei 225 appear to move in tandem with the Kospi, according to Frank Benzimra, head of Asia equity strategy at Societe Generale. However, he noted that larger diversified markets are unlikely to see similar volatility.

Analysts attribute the recent sell-off partly to concerns over massive spending on AI. Investment analyst Tobias Reger noted that months of soaring tech shares had generated "extreme euphoria," prompting some investors to take out loans to invest.

Yongjoon Kim, who also holds overseas shares, said the episode serves as a warning: "I think this whole episode is a warning to Korean investors, especially young investors, not to put everything in one basket and hope for the best."

His fiancée, Gaeon Lee, remains optimistic about a recovery but acknowledged the toll on Kim. "Seeing our home savings take a hit in the stock market was definitely a wake-up call," she said.

Source: BBC News