Nationwide Leverage Dream Shattered! Samsung and SK Hynix Collapse Drags Down Market, Over 300,000 Accounts Forced Liquidated, Losses Exceeding NT$7.85 Billion Since July

Latest data shows that from July 1 to 13, South Korea's memory chip duopoly suffered a bloodbath, with SK Hynix retreating nearly 40% from its peak and Samsung Electronics falling nearly 30%, triggering a chain reaction of forced liquidations.

According to South Korean official statistics, the cumulative forced liquidation in July reached 344.2 billion KRW (approximately NT$7.85 billion), with 144.2 billion KRW on July 9 alone. Over 1.2 million leveraged retail accounts across the market faced margin calls, of which approximately 320,000 to 360,000 were fully liquidated by brokers, with some even owing money.

Based on South Korea's population of approximately 35.7 million aged 15 to 64, roughly one in every 30 working-age individuals received a margin call notice. Retail brokerage account collateral balances plummeted by about 30 trillion KRW to the lowest level since February, with the margin call ratio rising to about 5% and continuing to climb.

Last month, young South Koreans were boasting about "earning five years of salary effortlessly and traveling the world," but by July 7, they had turned to "fivefold leverage blown up, lost five years of savings, won depreciated 20%, can't afford rent."

This frenzy originated from South Korea's national bet on semiconductors and AI. The government announced a 1,461 trillion KRW national-level "Three Super Projects" targeting semiconductors, physical AI, and data centers, while Samsung and SK Group collectively pledged 4,755 trillion KRW in long-term investment. With capital markets resonating, "Have you opened an account yet?" became a greeting among young people.

In the first five months of this year, retirement savings insurance cancellations increased by 62.7%, fund redemptions surged by 146.1%, and the five major commercial banks exhausted over 85% of their household loan quotas in the first half, with credit clearly flowing into the stock market.

South Korean regulators have taken action, raising margin requirements, restricting leverage and volatility, but Lee Chul-jae, Governor of the Financial Services Commission, admitted it is "not a one-time solution."

South Korean media outlet The Chosun Ilbo pointed out that regulatory credibility is caught in a dilemma: directly halting leverage products could cause shock, while denying the issue would damage regulatory authority.

Analysts noted that when "FOMO" becomes a social mindset, price movements are amplified by emotion and leverage. While AI and semiconductors are strategic industries, the convergence of policy, industry, and national wealth on a single track makes extreme risks unavoidable. The key going forward lies in investor education and a return to fundamentals; otherwise, the capital frenzy could become a "must-not-lose" survival game.