South Korea’s rookie investors lose small fortunes amid AI stocks frenzy

What the report says

South Korea’s retail investors have been hit hard after a steep reversal in the country’s stock market, which had surged earlier in the year on enthusiasm over artificial intelligence-linked chip demand. Al Jazeera reports from Seoul that many novice investors entered the market during the rally, encouraged in part by President Lee Jae Myung’s push to make equities more accessible and to lift the KOSPI index.

The article centers on Eun-bi, a civil servant in her thirties who pulled money from savings and bought shares in chipmakers such as SK Hynix, along with a U.S.-listed semiconductor fund, to help pay for her wedding next year. After the KOSPI fell sharply from its peak, she said her portfolio lost tens of thousands of dollars, forcing her to reconsider major plans. Al Jazeera says her experience reflects that of many retail investors who saw gains evaporate when the market turned.

The report says the KOSPI rose dramatically in the first half of 2026, driven by Samsung Electronics and SK Hynix, which together account for more than half of the index. But the benchmark then dropped sharply, while margin lending also fell as brokers liquidated positions of investors unable to cover losses. Analysts quoted by Al Jazeera said the risk was amplified by concentrated bets on a small group of chip stocks and by leveraged products approved by regulators.

The market turbulence has also become a political issue. Lee’s approval ratings have weakened, and critics have accused his administration of encouraging riskier trading. Still, some market participants told Al Jazeera that retail investors were not simply inexperienced, but were reacting to a broader boom that made semiconductor shares feel familiar and safe.