Original|Odaily Planet Daily (@OdailyChina)
Author|Wenser(@wenser 2010 )
On June 16, the hot meme "Korean girls cheer for the arrival of the human golden age" went viral on the internet. Three days later, South Korea's KOSPI index hit an intraday all-time high of 9385 points, seemingly validating the golden age prophesied in the post.
However, what arrived before "10,000 points" was an epic plunge.
Over the past month, South Korea's entire market circuit breaker (suspending all trading) was triggered a total of 4 times, all being downward circuit breakers; the KOSPI market triggered the KOSPI sidecar mechanism (suspending program trading) 38 times, and the KOSDAQ (growth enterprise board) market triggered the KOSDAQ sidecar mechanism 22 times, far exceeding the annual record of the 2008 financial crisis.
The KOSPI index experienced a maximum drawdown of 32% from its historical high, and the extreme crash triggered a wave of deleveraging.
By mid-July, the cumulative forced liquidation scale for that month in South Korea had reached 344.2 billion won; over 1.2 million leveraged retail accounts across the entire market hit margin call lines, with approximately 320,000 to 360,000 accounts being fully forcibly liquidated by securities firms, equivalent to about 1 in every 30 South Korean adults (approximately 3.4%) facing the risk of being wiped out; the balance of retail margin deposits evaporated by nearly 30 trillion won compared to the end of June, dropping to 107.1 trillion won, the lowest level since June 2020.
Volatility persists. Behind one circuit breaker after another are countless tragic stories of South Korean retail investors cutting losses, leveraged accounts being wiped out, and families being ruined.
Entertainer Seo Dong-ju Trapped on the "259th Floor" of SK Hynix
On July 13, South Korean entertainer Seo Dong-ju revealed on her YouTube channel "Money Trap" that she had bought SK Hynix at a high price of 2.59 million won; as the stock price fell to 1.84 million won, she mocked herself as "a Korean ant trapped on the 259th floor."
When talking about her outlook on the future market, Seo Dong-ju said: "I think we should wait and see a bit longer. Although I say this now, I'm actually really anxious inside. Sometimes, looking at the constantly falling numbers on my phone screen, I unconsciously start shouting."
In this round of暴跌, Seo Dong-ju's predicament is not an isolated case.
Video blogger "Rarael" shared a meme titled "There Are People on the 280th Floor Too," mocking himself for being trapped after buying SK Hynix at 2.8 million won—his account lost 44% (2.294 million won) last month and continued to plummet this month. South Korean comedian Mi Ha also revealed that she once lost 100 million won due to stock trading.
The continuously falling South Korean stock market has also made the "stock price floor meme" popular on Instagram and short video platforms, becoming a highly infectious self-mocking emotional material among young South Koreans.
South Korean Veteran Lee Seung-ho: Leverage Maxed Out, Lost 300 Million Won Within a Month
A South Korean veteran named Lee Seung-ho, staking his entire fortune, experienced heaven falling to hell in this stock market frenzy.
Lee Seung-ho, 24 years old, saved 20 million won in principal during his military service. Riding the stock market frenzy, he went all-in, using leverage to buy a single stock. His paper market value once skyrocketed to 300 million won, creating a "15-fold wealth myth."
"We live in an era where we cannot purchase real estate assets, so stock investment has become my only hope for a turnaround," he admitted. An ordinary apartment in Seoul is equivalent to 14 years of income for a young person without eating or drinking. Young South Koreans are excluded from traditional avenues of asset accumulation; high-leverage investment is the only way to bridge the wealth gap.
However, when the tide receded, the暴跌 of his single holding not only devoured the 280 million won paper profit but also wiped out that hard-earned principal. More fatally, Lee Seung-ho had also used credit loans and leveraged products to expand his investment scale, ultimately pushing himself into the abyss.
A gambler-style counterattack ended with a more thorough zeroing out. Among South Koreans who rely on credit loans and other leveraged assets to speculate in stocks, Lee Seung-ho is not an exception.
According to South Korean financial industry data, as of the end of June, the combined household loan balance (excluding policy loans) of the five major commercial banks—KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank—was 647.58 trillion won, an increase of 3.70 trillion won compared to the end of last year. This part of the funds already accounts for 85.3% of the annual loan limit, with only about 639.5 billion won remaining for the rest of the year.
The current market for loan-financed stock trading is already overcrowded; the South Korean stock market has entered a "super-lending period."
Paid Group Fan Stabs Stock Recommendation Blogger
On July 13, another decline in South Korean stocks triggered a market-wide circuit breaker.
That day, a man in his 20s in the Busan area stabbed a man in his 40s with a knife and fled. As the case unfolded, the truth was shocking—this was a stabbing incident triggered by "KOL's stock recommendations causing huge losses for fans."
The victim was a blogger for a YouTube stock channel (suspected to be WinnersTV), who had repeatedly incited fans in paid live streams to go all-in on investments. "Buy this stock even if you have to sell your underwear," "Learn to use financing bonds flexibly," and even encouraged fans to sell their cars and gold to go all-in on semiconductor stock leveraged products.
Many followers faced forced liquidation and financial ruin due to the暴跌. According to Busan police investigation, the perpetrator was a subscriber to his channel. After suffering major losses from investments made following his recommendations, his life fell apart, leading him to lash out with a knife in anger. The blogger was later transferred to the prosecution on suspicion of being an "unlicensed investment advisor."
A farce of paid stock recommendations ended in bloodshed.
British Investor in His Forties Loses 400 Million Won Investing in South Korean Stocks
In this堪称癫狂的 South Korean stock investment frenzy, many foreign investors also participated.
Data from the Korea Exchange shows that from July 20 to 23, foreign investors made net purchases in the South Korean stock market for four consecutive trading days, with a cumulative net purchase of 5.574 trillion won (approximately $3.8 billion), marking the first net inflow for four consecutive days since April. On July 22 alone, foreign investors made a net purchase of 2.6211 trillion won (nearly $1.8 billion) in the South Korean main board market, setting the highest record in nearly two months.
According to a share by an X platform blogger, a British man in his forties lost about 400 million won (approximately $274,000) due to the recent sharp decline in South Korean stocks.
Due to the loss of principal, the man is now in extreme anxiety. According to his own words: "I just want to sell all my holdings now and live peacefully."
Unfortunately, all lessons in the stock market require real money as an exchange; and once faced with a market大幅反弹 after selling holdings, it's believed no one could remain rational in such a situation, perhaps regretting their trading decisions even more.
South Korean Stock Investment "Master" Sees Assets Shrink by 1.5 Billion Won in 2 Months
Blogger "Manager Kim" shared a real story of a retail investor around him who fell from glory into darkness.
This investor entered the market relatively early. At the peak of last year's bull market, his account skyrocketed to 2 billion won (approximately $1.36 million). People around him called him a "master," saying he was very talented, and followed his footsteps in investing, making him highly regarded for a time. But in just two months, accompanying the stock market correction, 1.5 billion won vanished into thin air.
Interestingly, his psychological trajectory was remarkably consistent with every crypto player and stock market veteran:
"This is just a correction."
"This is actually a great buying opportunity."
"If I buy some more, my average holding cost will be much lower."
"As long as I hold on a bit longer, it will definitely be fine."
As Warren Buffett said, "Only when the tide goes out do you discover who's been swimming naked."
Many people interpret the "tide" here as the entire market, but in reality, the "tide" here mostly refers to market liquidity. When liquidity is excessive, everyone looks like a stock god. But high returns are not necessarily a reflection of investment ability; sometimes they are merely the result of taking on greater risk.
When the South Korean stock market falls into liquidity shortage due to excessive leverage, an imbalanced market structure, excessively high retail loan ratios, central bank interest rate hikes, and securities firms raising entry barriers, among many reasons, then those lacking risk management are destined to be swept into the abyss by the暴跌浪潮.
New Retail Investors Continue to Enter the Market
Despite frequent暴跌 and numerous wipeouts in the South Korean stock market, it still cannot stop newcomers from chasing the wave. The stories of the following two young investors are the best illustration.
Kim Ha-young, a 30-something white-collar worker in Seoul, first participated in stock investment last year after receiving a rental deposit refund from her apartment. "I didn't do any investment research at all; I simply chose SK Hynix and Samsung Electronics based on intuition." When asked for her reason, she didn't even think before answering: "When you mention South Korea, don't you immediately think of Samsung? Isn't such a choice obvious?"
Starting last September, Samsung and SK Hynix stock prices soared. She originally planned to "take profits after earning 50,000 won (approximately $33) and be done with it," thus freeing herself from the torment of being distracted by stock prices. But watching the continuously rising prices, she chose to keep adding to her position and decided in February of this year to hold these two stocks long-term. Currently, the market value of these two stocks has more than doubled.
Kim Ha-young admitted: "I know I have the risk of being carried away by rising or falling prices. Now I just want to let go of greed and proceed steadily." According to her plan, perhaps she might have the opportunity in the future to afford a down payment for a house on her own or prepare early for retirement.
Kim Do-hyun from an AI startup in Seoul shares the same sentiment. As half an "insider in the semiconductor industry," Kim Do-hyun has always highly认可 the market value of South Korean blue-chip stocks. He himself entered the stock market for investment influenced by this bull market cycle and optimistic profit expectations. In his view, "In this wave of行情, holding cash feels like a waste of resources."
The Blue House Creates the South Korean Stock Market Bull Run
The South Korean stock market彻底沸腾; data is the best proof: the number of South Korean stock investors soared from 6 million in 2019 to 14.5 million by the end of 2025; in May 2026, active trading accounts reached 105 million (a net increase of 6.93 million compared to the end of last year), about double South Korea's total population; the South Korean KOSPI index nearly doubled, leading global major indices.
And all of this离不开 last year's newly inaugurated South Korean President Lee Jae-myung.
Upon taking office, he高调承诺 to彻底改变 South Korea's image as an "investment cold spot,"彻底消除 the negative impression of the "Korea Discount." (Odaily Planet Daily Note: English term is Korea Discount, referring to the phenomenon where South Korean stocks are valued lower than global peers. Specifically manifested as many South Korean listed companies having strong cash flow and盈利表现, but their stock prices consistently trade below book value, and valuations are significantly lower than overseas counterparts. This is particularly evident in the price comparison between SK Hynix's South Korean and US-listed shares.)
Furthermore, Lee Jae-myung had公开承诺 to push the KOSPI index point to 5000 points—at that time the index was only 2800 points, and this target was achieved by January this year. Although the KOSPI index has fallen nearly 30% from its historical high, its year-to-date gain is still as high as 55.5%, far领先于 global other major capital market indices.
After assuming the presidency, to减轻 South Koreans' psychological reliance on real estate investment, the Lee Jae-myung government推出了一系列股市改革措施, including "allowing minority shareholders to concentrate their voting rights on candidates they support when electing board members," attempting to make the stock market a second reservoir for wealth.
Of course, Lee Jae-myung's approach is无可厚非. As Asia's fourth-largest property market, South Korea's real estate industry has become one of the most expensive property markets globally. Such high housing prices have also given many young South Koreans更充分的理由 to "leveraged stock trading" and "loan-financed stock investment." But the剧烈波动的 market ultimately taught them a血淋漓的投资课.
Whether KOSPI can return to its peak and whether the bull market乐章 can continue playing, no one can predict. But one thing is certain: this frenzy催生 by policy,助推 by leverage, and裹挟 by emotion is far from unique to South Korea. From Wall Street to Tokyo to Seoul, every generation of young people has bet on the future in their era's "gambling game" and has paid for some宏大叙事. The figures of young South Koreans are merely another vivid复刻 in the long river of history—they won't be the first, and they certainly won't be the last.
