Korean Stock Swings Eclipse Bitcoin as AI Chip Rout Hits Taiwan

South Korean equities have become increasingly tied to a small group of artificial-intelligence and semiconductor heavyweights, while retail investors have amplified market swings through margin borrowing and other leveraged trades. That concentration matters beyond Seoul: South Korea and Taiwan sit at the center of the global chip supply chain, allowing forced selling in Korean technology shares to tighten regional liquidity and pressure Taiwan-listed semiconductor stocks.

During the latest selloff, Korean stock-market volatility climbed above 60%, surpassing Bitcoin, while repeated circuit breakers were triggered as leveraged positions were unwound. The report linked the speculative buildup to policies under President Lee Jae-myung and said the retreat in AI-chip shares set off margin calls and forced deleveraging. The resulting liquidity shock spilled into Taiwan equities. The supplied material did not specify an exact index loss, financing amount or calendar date for the moves.