Unwinding of AI Stock Positions Batters South Korean Shares; Samsung Buyback Plan Spurs Rebound

South Korean stocks had fallen sharply as concentrated leveraged positions in AI-related shares were unwound and market speculation emerged about possible tax policy changes. The selloff hit semiconductor and technology stocks, including heavyweight Samsung Electronics, and tested investor confidence in the fundamentals of South Korea’s AI supply chain.

According to the latest reports as of July 20, 2026, bargain-hunting by retail investors helped South Korean stocks stabilize and rebound. Samsung Electronics was also reported to be considering a 90 trillion won share buyback, sending its stock up 10%. Market experts said the recent decline was driven mainly by technical deleveraging, with no clear weakening in semiconductor and AI demand.