In South Korea, some babies are receiving investment accounts along with their birth certificates. Parents are quickly opening trading accounts for their infants, hoping to invest in the growing semiconductor industry. This trend shows a financial market that is moving very fast. On June 18, 2026, the Korea Composite Stock Price Index, or KOSPI, broke records by going over 9,000 points. It ended the day at 9,063.84, which was a 2.25 percent increase from the day before. The index reached this new high in only 22 trading days, rising from 8,000 in mid-May. Since the beginning of January, the market has grown by about 109 percent.
The main reason for this growth is artificial intelligence. Big technology companies are investing heavily in AI technology, which creates a high demand for advanced computer chips. South Korea is home to two major companies in this field: Samsung Electronics and SK Hynix. On the day the market passed 9,000 points, SK Hynix announced it had sent early versions of its new memory chips, called HBM4E, to important partners.
Regular people are also a big part of this. In June, individual investors bought shares worth 16.2 trillion won, much more than the 3.5 trillion won bought by large investment funds. Foreign investors sold shares for 24 days in a row before they started buying again. On June 18 alone, individual traders invested over 900 billion won.
However, this excitement carries risks. People are afraid of missing out, leading them to take big risks. In late May, new investment funds were created that use borrowed money to increase the daily changes in Samsung and SK Hynix stocks. These funds quickly became very popular.
Lee Jin-woo, from Meritz Securities, said that individual investors have focused a lot on Samsung and SK Hynix. Because these are the largest companies, their performance now affects the whole market. He also mentioned that while these funds bring new money, they also increase the risk of losing money if stock prices fall.
The amount of borrowed money for stocks reached a high of 38 trillion won in late May. When stock prices go down, brokers automatically sell these borrowed shares to get their money back. Recently, these forced sales represented 9.1 percent of all borrowed money debt, the highest this year.
Noh Dong-gil, an analyst at Shinhan Securities, explained that people might sell stocks when they lose 15 percent, but the risk of automatic selling becomes much higher when losses reach 20 percent.
Regulators are concerned about this situation. The Financial Supervisory Service recently met with executives from major brokerages and told them to make rules stricter for borrowed money. Some companies have already put limits on new loans for fast-growing stocks.
Additionally, the market's strength is not spread out. Samsung and SK Hynix now make up more than half of the KOSPI's total value. This means smaller companies are not benefiting much from the boom, and the whole market is at risk if there are problems in the semiconductor industry.
Some financial experts compare this to 1999, when the Nasdaq grew a lot before collapsing. However, many people are still optimistic. Goldman Sachs recently increased its prediction for the KOSPI to 12,000, pointing to the strong demand for AI chips and good company profits.
Lee Kyoung-min, an analyst at Daishin Securities, believes the market is currently supported by these strong profits. He advises investors to expect more growth as long as these financial predictions remain positive. For now, the stock market continues to rise, supported by billions of borrowed money and the hopes of a new generation.