---
title: "South Korea just exposed the biggest risk facing the AI boom - the bubble may be breaking"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294223848.md"
description: "South Korea's stock market recently experienced a historic selloff driven by leverage, margin calls, and waning confidence in AI spending, wiping out billions invested in companies like Samsung and SK Hynix. Analysts warn that similar risks, including record margin debt and massive AI capital expenditures by US tech giants, may pose threats to the US market, suggesting South Korea's crash could be an early warning of a broader bubble burst."
datetime: "2026-07-29T14:32:21.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294223848.md)
  - [en](https://longbridge.com/en/news/294223848.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294223848.md)
generator: "portal-rs"
---

# South Korea just exposed the biggest risk facing the AI boom - the bubble may be breaking

South Korea's stock market surged to record highs as investors poured borrowed money into AI-driven companies like Samsung and SK Hynix, only to see billions erased in a matter of weeks. This video examines how leverage, margin calls, and slowing confidence in AI spending triggered one of the biggest market selloffs in the country's history. It also explores why many analysts believe the same risks now exist in the United States, where record margin debt and massive AI investments are supporting stock prices. As companies like Microsoft, Google, Amazon, Meta, Nvidia, and Micron continue pouring hundreds of billions into AI, the question is whether South Korea's crash was an isolated event - or an early warning of something much bigger.

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---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**