Korean Retail Traders Shift From Bitcoin to Leveraged Stock Bets as Margin Risk Builds

South Korean retail investors have rotated capital away from Bitcoin (BTCUSD) into highly leveraged domestic semiconductor stocks, driving margin credit to record levels and raising systemic risk. Outstanding margin loans hit about 36.47 trillion won as retail chased AI/memory-themed gains in names concentrated in Samsung and SK hynix, while the KOSPI roughly doubled from ~4,000 to above 8,000 (≈75% YTD), largely driven by a few chips names. Rising volatility that moves with prices (implied daily moves ~4.5%) and record brokerage margin-income illustrate how leverage is amplifying both upside and downside, increasing the potential for forced selling if a drawdown occurs. Regulators have flagged consumer-risk and warned that upcoming single-stock leveraged/inverse ETFs could exacerbate leverage. The shift does not reflect lower tolerance for volatility by retail but a search for stronger momentum, which may reduce some crypto demand and leave leveraged equity holders exposed to debt beyond invested capital.