South Korea’s stock market plunges to a three-month low, and investors rush to sell chip stocks

South Korea’s stock market plunged on Monday, falling more than 4%, and closed at its lowest level since the end of April. Investors rushed to exit AI-driven bets, accelerating the sell-off and causing the market’s total value to evaporate by more than a quarter within just one month. The sharp pullback by memory chip makers highlights the market’s growing reliance on SK hynix and Samsung Electronics, while also exposing investors’ increasing unease about rallies propelled by highly leveraged positions taken in these two chip manufacturers. Retail investors were hit hard, as a debt-investing frenzy was sparked by the convenient route of leveraged funds based on a single stock. (Sina Finance)
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