South Korea’s KOSPI index has more than doubled this year, crossing 8,000 for the first time in late May and peaking near 8,880. The engine behind this historic rally: domestic retail investors pouring money into semiconductor stocks as AI chip demand reshapes global markets.
The gains are staggering by any measure. A 100%-plus year-to-date surge through early June follows a 76% gain the previous year.
The ants are marching
South Korean retail investors, colloquially known as “ants,” have been the dominant force behind the rally. Every time foreign investors pulled back, the ants stepped in. They bought the dips. They loaded up on leveraged ETFs. They effectively became the market’s backstop.
Some of these investors have been accessing leveraged exposure through ETFs and platforms based in Hong Kong. When retail traders start reaching for leverage in a market that’s already doubled, the word “bubble” tends to enter the conversation.
