韩股年内7次熔断：年轻人被杠杆毁掉的盛夏

Original｜Odaily Planet Daily (@OdailyChina)

Author｜Wenser (@wenser 2010 )

On June 16, the meme "Korean girls cheer for the arrival of a golden age for humanity" went viral on the internet. Three days later, the KOSPI index hit an intraday all-time high of 9,385 points, seemingly confirming the golden age the post had prophesied.

However, arriving before the "10,000-point mark" was an epic crash.

Over the past month, circuit breakers halting all trading on the entire South Korean market have been triggered a total of 4 times, all on the downside; the KOSPI market triggered the KOSPI sidecar mechanism (suspending program trading) 38 times, while the KOSDAQ market triggered its own sidecar mechanism 22 times, far exceeding the full-year record set during the 2008 financial crisis.

The KOSPI index fell as much as 32% from its all-time high, and the extreme crash triggered a wave of deleveraging.

As of mid-July, the cumulative forced liquidation volume for the month had reached 344.2 billion Korean won; across the entire market, over 1.2 million leveraged retail accounts hit margin call thresholds, with approximately 320,000 to 360,000 accounts fully liquidated by brokerage firms -- meaning about 1 in every 30 South Korean adults (approximately 3.4%) faced the risk of liquidation; retail investors' margin deposit balance evaporated by nearly 30 trillion Korean won from the end of June, falling to 107.1 trillion Korean won, the lowest level since June 2020.

The volatility persists. Behind each successive circuit breaker lie the tragic stories of countless South Korean retail investors: cutting losses, getting liquidated on leveraged positions, and losing everything.

Celebrity Seo Dong-ju Trapped in SK Hynix at 'Floor 259'

On July 13, South Korean celebrity Seo Dong-ju revealed on the YouTube channel 'Money Trap' that he had bought SK Hynix shares at a high price of 2.59 million won. With the stock price falling back to 1.84 million won, he joked about being "a South Korean ant trapped on the 259th floor."

When asked about his outlook on the market, Seo Dong-ju said: "I think I should still wait and see. Though I say that now, truth is I'm really anxious inside. Sometimes I find myself unconsciously yelling while staring at the constantly falling numbers on my phone screen."

Seo Dong-ju's predicament is not an isolated case in this crash.

Video blogger "Rararl" shared a meme titled "There's someone on the 280th floor too," joking about buying SK Hynix at 2.8 million won. His account lost 44% (2.294 million won) last month and continues to suffer heavy losses this month. South Korean comedian Miha also revealed he once lost 100 million won from stock trading.

The relentless decline of the KOSPI market has also popularized the 'stock price floor meme' on Instagram and short-video platforms, becoming a poignant and relatable source of self-deprecating humor among young South Koreans.

Former Soldier Lee Seung-ho: Maxed Out Leverage, Lost 300 Million Won in One Month

A former South Korean soldier named Lee Seung-ho, betting his entire fortune, experienced a ride from heaven to hell amidst this stock market frenzy.

Lee Seung-ho, 24, had saved a principal of 20 million won while serving in the military. Riding the stock market frenzy, he went all-in, using leverage to buy a single stock. His paper value soared to 300 million won, creating a "15x instant wealth myth."

"We live in an era where buying property is impossible, so stock investment became my only hope to turn my life around." He confessed that an average apartment in Seoul costs the equivalent of 14 years of a young person's income without any expenditure. Young South Koreans are excluded from traditional asset accumulation paths, and highly leveraged investing becomes the only way to bridge the wealth gap.

However, when the tide receded, the crash of his single concentrated holding not only wiped out the 280 million won in paper profits but also erased his hard-earned principal. More fatally, Lee Seung-ho had also used credit loans and leveraged products to amplify his investment scale, ultimately pushing himself into the abyss.

A gambler-like comeback attempt ended in total liquidation. Lee Seung-ho is not alone among South Koreans using credit loans and other leveraged assets to trade stocks.

According to data from the South Korean financial industry, as of the end of June, the total 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 -- amounted to 647.58 trillion won, an increase of 3.70 trillion won from the end of last year. This figure already represents 85.3% of the annual lending limit, leaving only about 639.5 billion won for the rest of the year.

The market for borrowing money to buy stocks is now overcrowded, with the South Korean stock market entering a 'super-loan era.'

Paid Group Fan Stabs Stock-Recovery Blogger

On July 13, another decline in the South Korean market triggered a market-wide circuit breaker.

That day, a man in his 20s from the Busan area stabbed a man in his 40s and fled. As the case developed, the truth was shocking -- This was a bloody incident triggered by an influencer's stock tips causing massive losses for his followers.

The victim was a blogger on a YouTube stock channel (possibly WinnersTV), who had previously, in paid live streams, frantically urged viewers to go all-in. Phrases like "Even sell your underwear to buy this stock," "Learn to use margin loans flexibly," and even encouraging followers to sell their cars and gold to fully leverage into semiconductor stock products were common.

Many followers suffered forced liquidations due to the market crash, losing everything. According to the Busan police investigation, the assailant was a subscriber to the channel who, following the influencer's stock advice, suffered significant losses, leading to a collapse in his livelihood, and attacked out of anger. The blogger was later referred to prosecutors on suspicion of being an "unlicensed investment advisor."

A paid stock-tipping farce ended in a bloody tragedy.

British Investor in His 40s Loses 400 Million Won in Korean Stock Market

This near-maniacal frenzy also attracted foreign investors.

Data from the Korea Exchange shows that from July 20 to 23, foreign investors were net buyers of South Korean stocks for four consecutive trading days, with total net purchases reaching 5.574 trillion won (approximately USD 3.8 billion), the first four-day net inflow streak since April. On July 22 alone, foreign investors net bought 2.6211 trillion won (nearly USD 1.8 billion) on the main board, the highest in nearly two months.

According to a post shared by an X platform blogger, one British man in his forties lost approximately 400 million won (about USD 274,000) due to the recent sharp decline in Korean stocks.

Suffering from the loss of his principal, the man is now extremely anxious. He stated: "Right now, I just want to sell all my holdings and live in peace."

Unfortunately, all lessons in the stock market must be paid for with real money; and once faced with a significant market rebound after selling, it's hard for anyone to remain rational, perhaps regretting their trading decisions even more.

Korean Stock 'Master' Loses 1.5 Billion Won in 2 Months

Blogger "CEO Kim" shared the real story of a retail investor who fell from prominence to despair.

This investor entered the market early. At the peak of last year's bull market, his account ballooned to 2 billion won (about USD 1.36 million). People around him called him a "master," praising his talent and following his investment footsteps. For a time, he was the talk of the town. But in just two months, with the market correction, 1.5 billion won vanished into thin air.

Interestingly, his psychological trajectory was strikingly similar to that of every crypto trader and stock market veteran:

"This is just a correction."

"This is actually a great buying opportunity."

"If I buy some more, my average cost basis will be much lower."

"If I just hold on a little longer, everything will be fine."

As investing legend Warren Buffett said: "Only when the tide goes out do you discover who's been swimming naked."

Many interpret "the tide" as the overall market, but it more accurately refers to market liquidity. When liquidity is excessive, everyone looks like a stock-picking genius. However, high returns are not necessarily a sign of investing prowess; sometimes, they are merely the result of taking on greater risk.

When the Korean stock market falls into a liquidity crunch due to excessive leverage, imbalanced market structure, high retail loan ratios, central bank rate hikes, and increased entry barriers by brokerages, those lacking risk management are destined to be swept into the abyss by the wave of the crash.

New Investors Keep Flowing In

Despite frequent crashes and widespread liquidations in the Korean stock market, it still can't stop newcomers from joining the frenzy. The stories of the following two young investors are a perfect illustration.

Kim Ha-young, a 30-something office worker in Seoul, first invested in stocks last year after getting a deposit back from her rented apartment. "I did absolutely no research, just picked SK Hynix and Samsung Electronics based on pure intuition." When asked why, she replied without hesitation, "When you think of Korea, isn't Samsung the first thing that comes to mind? Isn't that obvious?"

Starting last September, shares of Samsung and SK Hynix soared. Her original plan was to "sell as soon as I made 50,000 won (about USD 33)" to free herself from the stress of watching stock prices. But watching the prices rise, she kept adding to her positions, and by February this year, decided to hold the two stocks long-term. Currently, the market value of her holdings has more than doubled.

Kim Ha-young admitted: "I know there's a risk of being swept away by the rising or falling prices. I just want to let go of greed now and play it steady." Ideally, she hopes to one day afford a down payment on a house on her own, or prepare for retirement early.

Kim Do-hyun, who works at an AI startup in Seoul, shares the same view. As a "quasi-insider" in the semiconductor industry, he has always valued the market worth of Korean blue-chip stocks. He himself entered the stock market drawn by the current bull market and optimistic earnings projections. In his view, "holding cash during this rally feels like a waste of resources."

Cheong Wa Dae Orchestrates the KOSPI Bull Market

The Korean stock market was completely red-hot, and the data serves as the best evidence: the total number of 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 from the end of last year), roughly double South Korea's total population; the KOSPI index nearly doubled, leading global major stock indices.

All of this was inseparable from South Korean President Lee Jae-myung, who took office last year.

From the start of his term, he made high-profile promises to completely change Korea's image as an "investment cold zone" and eradicate the negative perception of the "Korea Discount." (Editor's Note: Korea Discount refers to the phenomenon where Korean stocks are undervalued compared to similar global equities. Specifically, many listed Korean companies show strong cash flow and earnings, yet their stock prices trade below book value, and valuations lag significantly behind international peers. This is particularly evident in the price comparison between SK Hynix's Korean and US-listed shares.)

Furthermore, Lee Jae-myung publicly pledged to push the KOSPI index to 5,000 points -- when the index was around 2,800 points. This goal was achieved in January this year. Although the KOSPI has since fallen nearly 30% from its all-time high, its year-to-date gain remains at a massive 55.5%, far ahead of other major global capital market indices.

After assuming the presidency, to reduce Koreans' reliance on real estate investment, the Lee Jae-myung administration introduced a series of stock market reform measures, including "allowing minority shareholders to consolidate their voting rights for the candidates they support when electing board members," aiming to make the stock market a second reservoir.

Of course, Lee Jae-myung's approach was understandable. As Asia's fourth-largest real estate market, Korea's property sector has become one of the most expensive in the world. These exorbitant housing prices have given many young Koreans more reason to "use leverage to buy stocks" and "borrow money to invest in stocks." However, the violently fluctuating market ultimately taught them a bloody lesson.

Whether the KOSPI can return to its peak, and whether the bull market's symphony can continue playing, no one can predict. But one thing is certain: this frenzy -- fueled by policy, propelled by leverage, and driven by emotion -- is far from unique to South Korea. From Wall Street to Tokyo to Seoul, every generation of young people has gambled on the future in their era's 'casino,' buying into grand narratives. The young Koreans are merely another vivid echo in the long river of history -- they are neither the first, nor will they be the last.