SEOUL, June 23 (AJP) - South Korea's stock craze has reached a point where borrowing to buy shares is becoming more socially acceptable than borrowing to buy an apartment.
The shift reflects a profound change in a country long defined by its obsession with real estate, as millions of Koreans pour into a handful of AI-related stocks in pursuit of rapid wealth creation.
Tuesday's selloff offered a reminder of how fragile that enthusiasm can be.
The benchmark KOSPI crashed nearly 10 percent, while the junior KOSDAQ plunged almost 8 percent as a broad market correction swept through Seoul.
Only 46 stocks advanced against 859 decliners on the main board, while 134 gained versus 1,574 losers on the KOSDAQ.
For Korea's "ants" — the nickname for retail investors — it was a bruising day.
Yet the mania itself shows little sign of cooling.
Stocks dominate lunchtime conversations, subway rides and office meetings. Fear of missing out, or FOMO, has pushed leveraged investment to unprecedented levels, overtaking concerns that once centered almost exclusively on the housing market.
Margin loans reached a record 38.48 trillion won ($28 billion) as of June 19, according to the Korea Financial Investment Association, after the KOSPI broke above 9,000 for the first time in history.
The psychology surrounding wealth accumulation is changing alongside the money.
According to the 2026 Korea Wealth Report by Hana Financial Research Institute, 43 percent of wealthy Koreans with more than 1 billion won ($730,000) in financial assets said financial investments are now a more effective way to build wealth than real estate.
The findings point to a remarkable reversal in a country where apartment ownership has long been treated as the ultimate measure of financial success.
But the fever is highly concentrated.
"It's like college admissions," said Park Jae-ha, a day trader in his 20s.
"There are many universities, but everyone only wants to get into SKY."
In Korea's stock market, the equivalent of SKY — shorthand for Seoul National University, Korea University and Yonsei University — has become a small group of AI winners led by Samsung Electronics and SK hynix.
The divergence is becoming extreme.
According to market data provider MP Doctor, the KOSPI surged 11.43 percent during the week of June 15-19, making it the best-performing major stock index among G20 economies.
The KOSDAQ, by contrast, fell 6.07 percent during the same period, making it the worst performer in the group. Over the past month, the junior index has slumped 16.75 percent.
The gap has widened all year.
While the KOSPI has soared 114.81 percent so far this year, the KOSDAQ has gained just 4.44 percent. The junior market now accounts for only 6.8 percent of South Korea's total stock market capitalization, its lowest share since 1999.
The concentration is visible even in borrowing.
Of the record 38.48 trillion won in margin loans, 29.4 trillion won was tied to KOSPI stocks, compared with 9.08 trillion won for the KOSDAQ.
Analysts cite three drivers behind the divide: money flows, earnings and interest rates.
Semiconductor giants continue to enjoy rising profit forecasts as global AI investment accelerates, while many KOSDAQ companies, concentrated in biotechnology and battery sectors, have struggled to generate comparable earnings momentum.
Higher interest rates have added further pressure.
Growth stocks tend to be more sensitive to tighter liquidity conditions, leaving the KOSDAQ particularly vulnerable as monetary policy turns more hawkish.
"For money to return to the KOSDAQ, the current rally in large-cap stocks would first have to end," said Lee Jae-won, an analyst at Yuanta Securities.
That bleak outlook is already visible online.
KOSDAQ investor communities have become increasingly bitter as the performance gap with the KOSPI widens.
"It's a pyramid," one investor wrote. "The winners at the top keep getting richer while the rest keep slipping."
Some have turned their frustration toward policymakers.
"Even when chip stocks rise in the U.S., biotech doesn't collapse," another investor wrote. "If pharmaceuticals and biotech continue to suffer because of this semiconductor obsession in Korea, financial authorities have made a serious mistake."
Others have simply given up.
"For now, staying out of the market is an investment strategy," one post read.
Meanwhile, optimism thrives elsewhere.
"This is a historic moment," one investor wrote.
Another recalled advice from a friend who made 1 billion won during the rally.
"Never sell Samsung and SK hynix. Just be patient."
Regulators, however, are increasingly uneasy.
Lee Chan-jin on Monday openly regretted approving single-stock leveraged ETFs tied to Samsung Electronics and SK hynix, saying the products had produced limited benefits while exposing retail investors to mounting risks.
"I personally regret the timing of the approval," he said.
The products were introduced last month to encourage domestic investors to gain leveraged exposure at home instead of turning to overseas markets.
"The effect has been minimal, but the side effects have become too significant," Lee said.
He warned that the products encourage excessive trading and primarily benefit securities firms rather than investors.
"There is a risk that investors gain little while securities firms and liquidity providers earn most of the profits."
Lee said turnover in some single-stock leveraged ETFs reached 200 percent and remains around 130 percent. He estimated cumulative trading commissions generated by the products at between 5 trillion won and 10 trillion won.
In one of his strongest remarks, he even expressed personal regret.
"Maybe I should have physically blocked the approval process at the time," he said.
The regulator is now discussing possible measures with policymakers, including safeguards on margin and credit-backed trading.
Yet the warnings have done little to dampen enthusiasm.
"I refresh the app over and over, sometimes several times a minute," said Dan Kim, 36, who owns SK hynix, Samsung Electronics, Samsung Electro-Mechanics and the TIGER U.S. S&P 500 ETF.
"Yesterday was all red, and now I check again today and it's all blue. Honestly, maybe I'd be better off not looking at it at all."
Still, he keeps checking.
"I never invested before," said H.K., who runs a cafe in Seoul.
"Every customer who comes into my cafe seems to be talking about stocks these days — Samsung, SK hynix, ETFs. At some point, I started to feel like I was the only one not in the game."
Some are getting rich. Others are being left behind.
As more Koreans borrow money to chase a handful of AI winners, the country's defining asset bubble may no longer be apartments.
It may be a handful of stocks.
And the biggest question may no longer be who is winning today, but who will still be standing when the rally eventually cools.
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