The AI Daily Brief · Friday, July 31, 2026
The Korean stock market, particularly the Kospi index, has seen a significant crash, down 40% in a month, making it the worst stock crash in Korean history. This downturn is attributed partly to the behavior of Korean retail traders who heavily use leverage, leading to widespread margin calls and liquidations.
“If you look at Broad to South Korea for one interconnected example, that market is in absolute shambles.”
“The major Korean index known as the Kospi is down 40% in a month, making it the worst stock crash in Korean history, worse than the Asian financial crisis in the 90s, worse than the GFC in 2008.”
“According to Goldman Sachs, around 1 million Korean accounts for margin called this week, meaning that they had to deposit more money to stay afloat.”