00:02You're listening to AI Prism from Seoul Economic Daily.
00:06If you hold EWY, FLKR, or any KoreaLink fund, July 2nd is not noise. The hashtag CoSPI fell 7.89%,
00:15erasing roughly $407 billion USD. Does this crash create new risk for your Korea holdings? And what do you need
00:23to know before the next session? It's Friday, July 3rd. Let's look at what this means for retail investors in
00:28Korea.
00:29OK, let's unpack this, because there's a massive divergence happening between how everyday retail investors and institutional funds are reacting
00:36right now.
00:37Absolutely. I mean, the data shows two completely different realities. Foreign investors net sold $4.4 trillion, or about $3
00:43.1 billion USD, on July 2nd, marking 10 consecutive days of selling.
00:48Wow. 10 days straight.
00:50Yeah. And meanwhile, retail investors net bought $6.3 trillion, which is $4.5 billion USD. The catalyst here is
00:57actually Meta, because they are starting a service called Metacompute, where they essentially rent out surplus AI data center capacity.
01:03Right. So they're renting it out to outside clients, you know.
01:05Exactly. Which is sending a massive signal that hyperscaler AI investment might have, well, finally peaked.
01:10That makes so much sense. You know, it's like retail investors are catching a falling knife while the smart money
01:15basically evacuates.
01:16That is exactly what it looks like, yeah.
01:17I mean, it's like a massive restaurant chain suddenly deciding to rent out their extra commercial ovens.
01:22Right.
01:22It signals they aren't planning to open new locations, which instantly panics their parts suppliers.
01:27Right. They just don't need the equipment anymore.
01:28Exactly. So if Meta isn't building new data centers, they aren't buying high bandwidth memory chips.
01:34No wonder the semiconductor heavyweights were totally obliterated, with Samsung Electronics shedding 9.1% and SK Hynix collapsing 14
01:44.6% in a single session.
01:46What's fascinating here is how active traders are trying to navigate that exact collapse.
01:51Like by shorting the market.
01:52Yeah. Inverse ETF daily trading value rose 48% to $2.8 trillion, or roughly $2 billion USD.
02:00And for those holding amplified leveraged single stock products, well, the damage was immediate.
02:06Because they amplify the dealing moves, right.
02:08Right. So SK Hynix leveraged ETFs dropped approximately 30%.
02:12Wait, 30%? But hold on. Are the actual company fundamentals being completely ignored here?
02:17It definitely seems like the market is ignoring them for now.
02:19Because, I mean, IBK Securities just raised their SK Hynix target price to $4 million, which is about $2,857
02:29USD.
02:30Yeah, they did.
02:30And they pointed directly to the strong ongoing demand for this exact high bandwidth memory, or HBM chips.
02:37So aren't institutions just kind of overreacting?
02:39Individual retail investors net bought $4.5 billion U.S. dollars as foreigners exited, creating immediate portfolio risk because retail
02:47buyers are absorbing an institutional exodus with no sign of stabilization after erasing roughly $407 billion USD from the hashtag
02:55co-SPI.
02:57This means positions entered now face continued mark-to-market pressure until this 10-session foreign selling streak breaks.
03:03For standard Korea ETF holders, you must wait to see if foreign net flows reverse, while watching if the National
03:09Pension Service's July rebalancing adds supply-side pressure to large-cap names.
03:13So basically, even if the underlying companies are fine, the immediate mechanics of supply and demand are just stacked against
03:19anyone buying the dip right now?
03:20Exactly. It's a structural risk.
03:22Oh, and briefly, you should note that the ACE TDF 2050 and ACE Apple Value Chain Active ETFs D-List
03:31on July 7 and 9...
03:33Wait, they're shutting down entirely.
03:34Yes, due to a benchmark correlation test failure, meaning they didn't track their underlying index closely enough, you will be
03:40automatically redeemed at the fund's net asset value.
03:43But you should verify your holdings immediately.
03:45Good to know, yeah. It really leaves us with a critical question to consider this weekend, because if the massive
03:51U.S. tech giants are truly finished building out their AI infrastructure, who is going to step up to buy
03:57the millions of advanced memory chips Korea is churning out next?
04:00That is the big question going forward, for sure.
04:02That's today's AI Prism, Retail Investors.
04:05This episode was produced with AI assistance based on Seoul Economic Daily Reporting and reviewed by a human editor.
04:11AI Prism is a Juan Ifra Award-winning series. We'll be back tomorrow.
04:16You've been listening to AI Prism from Seoul Economic Daily.
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