South Korean retail investors borrow over 600 billion won as KOSPI hits circuit breaker on June 10

Samsung and SK Hynix fell 6%, extending the AI-stock pullback as margin-style borrowing through bank overdraft accounts rose during the selloff.

Summary

South Korea’s KOSPI index hit a circuit breaker again on June 10 after Samsung and SK Hynix dropped 6%, in a sign that the pullback in AI-related stocks was still running. During the decline, balances in overdraft accounts at major commercial banks rose by more than 600 billion won, roughly $267 million, indicating retail investors were borrowing to buy into the selloff. Circuit breakers are market-wide trading curbs designed to slow sharp declines and contain panic selling.

Terms & Concepts
  • circuit breaker: Temporary trading curb during sharp market moves
  • AI-related stocks: Shares tied to artificial intelligence themes
  • overdraft accounts: Bank credit lines that allow negative balances