Bank of Korea warns AI chip leverage threatens markets

The Bank of Korea has warned that concentrated and leveraged trades linked to Samsung Electronics and SK Hynix could increase financial-market volatility if demand for artificial intelligence chips weakens. Summary Bank of Korea warned leveraged semiconductor trades could amplify volatility across domestic and overseas markets. Samsung Electronics and SK Hynix together represent nearly half of the benchmark Kospi’s market capitalization. Hong Kong-listed leveraged products tied to Korean chipmakers expanded more than twentyfold during 2026’s first-half. South Korea’s second-quarter real GDP grew 0.6%, while nominal output increased much faster year-over-year officially. The central bank raised its 2026 growth forecast to 2.6% as chip exports strengthened sharply. Bank of Korea’s September monetary policy report, published on Sept. 10, examined the country’s semiconductor-led expansion alongside rising asset prices, household borrowing and changing conditions in overseas financial markets. Bank of Korea connects AI chip trades to market risk Samsung Electronics and SK Hynix now account for nearly half of the Kospi’s market capitalization, according to the central bank’s analysis rep...