The South Korean drama that has global investors fixated
Balance is a fundamental principle of everyday life on the Korean peninsula, but the worst stock market crash in the nation's history threatens the livelihood of millions.
South Korea's stock market has plunged nearly 40 percent in just five weeks, causing widespread fear and financial hardship among investors. As the world's most technology-intensive market, the crash could signal potential trouble for global tech stocks. Many South Koreans, driven by debt, invested heavily in technology stocks, particularly memory chip makers, following President Lee Jae Myung's encouragement to boost the country's global standing.
However, the surge in chip makers' stock prices led to a global shortage of memory chips, which are essential for mobile phones and laptops. Major American tech companies, including Amazon, Microsoft, Meta, Alphabet, Oracle, Apple, and Tesla, all experienced sharp declines as they ramped up data center construction. The South Korean market, once valued at less than 60 percent of the global average, now accounts for 60 percent of the Kospi's total value.
As the government scrambles to address the crisis, investors face mounting losses and debt, with more than 360,000 margin calls already issued.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
