[News Space=Reporter seungwon lee] With the KOSPI index hitting record highs every day and the stock prices of Samsung Electronics and SK Hynix soaring, individual investors are pouring money into direct purchases, debt investments, and ETFs. This year, they have fueled the upward trend, with net purchases of 1.3461 trillion won in Samsung Electronics alone. However, some investors have cut losses in SK Hynix and re-entered, demonstrating mixed performance. This movement is accompanied by record-high deposits and credit loans amid expectations of an AI semiconductor supercycle.

In particular, domestic individual investors flocked to the Hong Kong stock market, pouring 10 billion won into double-leveraged ETFs. Bank demand deposits have withdrawn 24 trillion won in just one week since the start of the new year, while stock market deposits hit a record high of 93 trillion won. This "money movement" reflects expectations of a structural rise amid the AI ​​semiconductor boom.

Hong Kong Leveraged ETFs Betting Fever

As of the 7th, domestic investors recorded a net purchase of US$4.58 million (approximately KRW 6.6 billion) in the Hong Kong-listed "CSOP Samsung Electronics Daily 2X Leverage" and US$2.45 million (approximately KRW 3.6 billion) in the "CSOP SK Hynix Daily 2X Leverage," for a total of US$7,037,428 (approximately KRW 10.2 billion). Considering the settlement period (T+2), this represents an inflow of KRW 10 billion in just three trading days, placing these ETFs in the 4th and 8th spots in terms of net purchases in Hong Kong.

The "fire ants" who are searching for products with double the price tag that are not available in Korea are already estimated to have made profits of around 30%, thanks to the surge in Samsung Electronics' stock price to around 139,000 won and SK Hynix to around 744,000 won.

Bank deposits are running out, and the stock market is experiencing record-high liquidity

As of the 7th, demand deposits at the five major banks amounted to 649.6311 trillion won, a decrease of 24.3772 trillion won (-3.6%) from the end of last year. Time deposits also decreased by 36.7635 trillion won to 902.5228 trillion won. This money flowed directly into the stock market, driving investor deposits to a record high of 92.8537 trillion won on the 8th, a growth of over 5 trillion won since the start of the new year.

The balance of credit transaction loans reached an all-time high of 27.945 trillion won, fueling the debt-market fervor, and household credit loans from the five major banks also increased by 142.8 billion won to 105.1112 trillion won.

Debt-to-equity and credit financing hit record highs... SK Hynix quickly rises to the top

As individual debt investment fever heats up, Samsung Electronics' credit transaction loan balance reached a record high of 1.4 trillion won, and SK Hynix's reached 1.1 trillion won, with SK Hynix surpassing Samsung to take first place. SK Hynix's debt investment volume has surged 3.62-fold this year, with bets on the AI ​​boom prominent, pushing overall credit loans to an all-time high. While securities firms warn of the risk of short-selling in a bear market, individuals are betting all-in on rising stock prices.

Individual net buyers favor Samsung Electronics, but foreign investors and institutions are out of sync

As of the 8th of this year, individuals had been the largest net buyers of Samsung Electronics, worth 1.3461 trillion won, supporting the stock price's stabilization in the 130,000s. However, SK Hynix was the top seller, with a net selling of 587.8 billion won, leading to losses. Recently, individuals have been hoarding the top two semiconductor stocks, net buying Samsung Electronics (611.7 billion won) and SK Hynix (200.8 billion won). However, foreign investors have been net buyers of Samsung Electronics (595.6 billion won) and SK Hynix (739.1 billion won), resulting in a mix of profit-taking and new inflows. On the 9th, net buying by individuals and institutions maintained the KOSPI high of 4,586.

Preference for "safe assets" such as semiconductor ETFs and indirect investments accelerates

Individuals formed the largest asset class this year, net purchasing KRW 30.6 trillion through ETFs outside of direct investment. Funds poured into products like KODEX Semiconductor, pushing its market cap past KRW 300 trillion. Samsung Asset Management emphasizes semiconductor ETFs as a "must-have portfolio" and recommends a half-and-half strategy for the first quarter. Indirect investments in mutual funds and ETFs are expanding, complementing high-risk direct trading.

Performance and supply/demand outlook supporting the semiconductor boom

Samsung Electronics achieved a quarterly record operating profit of KRW 20 trillion in the fourth quarter of 2025, and is expected to surpass KRW 100 trillion this year. UBS projects Samsung Electronics' operating profit of KRW 135.3 trillion in 2026 (up 225% from last year's estimate), and SK Hynix's net profit also forecasts a 75% increase, driven by robust HBM performance. The shortage of memory, including HBM, due to surging AI demand is expected to persist until 2028. Semiconductors, which account for 47% of KOSPI net profit (Samsung 26%, Hynix 21%), will drive the index's rise.

KOSPI Breaks 4,500, Watch for Risk Factors… Watch for Overheating Corrections

The KOSPI hit a new high for the sixth consecutive trading day on the 9th, reaching 4,586.32, and surged from 4,309 to 4,525 on the first trading day of the new year. Individual investors are chasing the market, but securities firms are warning of leveraged ETF volatility and the potential for short-term corrections. Hana Securities advises, "Avoid excessive selling amidst persistent memory shortages," but concerns are also growing about overheated debt investment, fueled by rising credit card loan balances.

Securities firms predict that Samsung Electronics and SK Hynix will achieve combined operating profits of over 200 trillion won by 2026, but they raise concerns about the possibility of a short-term correction due to excessive individual buying and increased debt investment. Experts say, "Despite foreign selling, individual buying is supporting the index, but some experienced investors are selling Samsung Electronics and SK Hynix to take profits." They also point out that, "While there is significant upside potential amid continued demand for AI HBM, caution is needed regarding increased volatility."