Woofun AI reports that South Korean semiconductor storage stocks have retreated more than 20% in recent weeks, pressured by a reassessment of AI computing demand and tightening leverage policies. Global peers including Micron, SanDisk, Seagate, and Western Digital also declined, fueled by concerns over overspending on AI infrastructure following Meta's plan to lease idle resources.

The Bank of Korea raised interest rates by 25 basis points to 2.75%, the first hike since January 2023.

Concurrently, the Korea Financial Investment Association is discussing raising margin requirements for leveraged chip ETFs to five times current levels. These measures intensify caution regarding funding conditions in the sector, while industry cycles of capacity expansion and contraction continue to influence market sentiment.