[COVER STORY] Korean investors in Nvidia suffer estimated $2.4 bil. in valuation losses

A deepening scandal involving Nvidia CEO Jensen Huang is causing concern among Korean investors, as the company's share price drops and questions arise regarding his future. Nvidia is the second-largest U.S. stock held by Korean investors, following Tesla, leaving domestic shareholders vulnerable to potential losses as the chipmaker's shares take a hit.

As of Thursday, Korean investors owned approximately $13.65 billion worth of Nvidia shares, according to data from the Korea Securities Depository. About 800,000 retail investors in the country possess Nvidia stock. Since the company disclosed an investigation into the allegations, Nvidia shares have declined by nearly 15 percent.

If the retail investors had kept their holdings, the 15 percent reduction in shares would result in an estimated $2.4 billion in valuation losses for them. These losses extend beyond direct share ownership. Around 153 exchange-traded funds (ETFs) listed on the Korea Exchange have a stake in Nvidia. The ACE Nvidia Bond Mixed ETF, which holds assets of around 197.9 billion won ($148 million), has about 30 percent of its portfolio invested in the company.