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A South Korean Margin Call Heard Around The World (SP500)
Deep Value Investing · 2026-06-24 · via All Articles on Seeking Alpha

Summary

  • I wouldn't treat Korea’s 10% crash this week as a memory chip obituary.
  • I see a leveraged South Korean market, with forced selling doing most of the damage this week.
  • That said, reports of SK Hynix potentially moving HBM4 production to commodity DRAM due to higher profitability challenge the HBM memory premium narrative.
  • In the U.S., we have a record margin debt, AI concentration, and an index leaning too hard on one crowded trade: AI beneficiaries.
  • I'm cautiously bullish for now, but I'm not in a buy-and-hold mode. A significantly bigger unwind than in Korean still worries me.
vintage mobile phone

thawornnurak/iStock via Getty Images

The KOSPI, South Korea’s main index, just had a historic down day this week. It fell 9.99% (let’s call it 10%, shall we) to close at 8,203, knocking 910 points off Monday’s record close of 9,114.

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