The South Korean stock market has risen over 22% within 10 days, with chips regaining momentum.

The South Korean stock market has risen, with the benchmark index expected to enter a technical bull market, driven by a rebound in global AI trading, which quickly reversed last month's historic plunge. On Thursday, the benchmark Kospi index rose by 4%, with a cumulative increase of over 22% since the low on July 30. Major contributors to this index included heavyweight stocks such as memory chip manufacturers Samsung Electronics and SK Hynix, both of which saw significant stock price increases. As global tech giants reported continued massive AI expenditures in their latest earnings reports, market enthusiasm for technology hardware stocks is returning. This sentiment stands in stark contrast to the past few months, when forced liquidation of leveraged chip stock positions not only halted trading but also cost retail investors tens of billions of dollars in wealth. Recent government restrictions on single-stock leveraged ETFs and signs of reduced margin debt among investors are helping to stabilize the market. "Once the leverage is removed, we could see a sharp rebound in the same market," said Maxence Visseau, Chief Investment Officer of Arkevium Capital in Dubai. "The forced sellers have disappeared. Short sellers have taken profits. Traders have reduced their downside hedges." Year-to-date, the South Korean Kospi index has risen by over 60%. The index plummeted by 22% in July, marking its worst monthly performance since the global financial crisis.