Seoul, 30 July 2026 – South Korea’s effort to calm one of the world’s sharpest equity sell-offs is confronting a difficult reality: trading restrictions can slow market mechanics, but they cannot quickly restore confidence after roughly US$2 trillion in value has been erased.
The decline has been concentrated around technology shares and leveraged retail positions that had benefited from optimism over artificial intelligence and memory chips. When doubts about the pace and profitability of AI investment intensified, crowded trades reversed quickly. The resulting losses spread beyond professional portfolios into household finances, where margin borrowing and leveraged products had magnified exposure.
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