South Korea's retail investors are pulling money out of savings accounts, fixed deposits, and life insurance policies at a record pace to pile into SK Hynix and Samsung Electronics, two stocks that now make up roughly 42% of the KOSPI. Savings bank deposits have fallen below ₩100 trillion ($66.24 billion) for the first time in four years, while commercial bank time deposits have dropped by about ₩12 trillion ($7.94 billion) since February as cash rotates into equities. The rush is most pronounced among older investors, who now hold roughly 62% of all margin loans at the country's top brokerages.
Margin debt among the 60-plus crowd
Investors in their 60s have doubled their margin borrowing over the past year, from ₩3.9 trillion ($2.58 billion) to ₩8 trillion ($5.29 billion). That group, along with those over 50, is collectively the biggest user of leveraged bets on the KOSPI. The bets paid off handsomely during the AI-fueled rally — SK Hynix has gained 265% since November, and Samsung Electronics has climbed 162% — but the ride turned rough in March. The KOSPI dropped 19% that month, and leveraged older investors took average losses of roughly 20% during the slide.
Insurance surrenders surge as policyholders cash out
The top three life insurers reported a 16% jump in policy surrenders in the first quarter of 2026, and savings-type insurance policies saw a 23% increase in cancellations as households cashed out for equity purchases. The trend suggests that people are willing to break long-term contracts to get their hands on cash for stock buying. The Korean won has also been active, handling about 30% of global spot volume on exchanges Upbit and Bithumb, a sign of the retail frenzy.
Government support adds fuel
Korea's government added a ₩33 trillion ($21.86 billion) support package for the chip sector, reinforcing the narrative that the two semiconductor giants are national champions. But technical indicators are flashing warning signals: weekly RSI readings above 80 on both SK Hynix and Samsung point to overbought conditions. The next earnings reports from both companies will test whether the leveraged rally can hold together.
