South Koreans Tap Savings, Insurance to Buy SK Hynix, Samsung

South Korean households have withdrawn bank deposits and surrendered life-insurance policies to buy SK Hynix and Samsung Electronics as both stocks rose on demand for AI chips. Savings bank deposits fell below ₩100 trillion for the first time in four years. Commercial bank time deposits have declined by about ₩12 trillion since February as cash moved into equities. At the country’s three largest life insurers, policy surrenders rose 16% in the first quarter of 2026, with savings-type policy surrenders up 23% as some households cashed out to fund stock purchases.

The shift into leveraged equity positions has been led by older investors. People aged 50 and over hold about 62% of all margin loans at South Korea’s largest brokerages. Margin debt among investors in their 60s increased from ₩3.9 trillion to about ₩8 trillion over the past year, according to disclosures by domestic securities firms.

The buying concentrated on two chip makers. SK Hynix has climbed roughly 265% since November and Samsung Electronics about 162% over the same period. Together the two companies account for about 42% of the KOSPI index. Weekly relative strength index readings for both stocks were above 80, a common technical signal interpreted as overbought.

Policy support and recent market swings coincided with the retail flows. The government announced a ₩33 trillion support package for the chip sector. The KOSPI fell about 19% in March before recovering; many leveraged, older investors recorded average losses of roughly 20% during that slide.

Trading patterns extended into cryptocurrencies. Korean won trading accounts for around 30% of global spot volume on exchanges Upbit and Bithumb. Analyst and YouTuber Crypto Rover highlighted: “The marginal buyer is now liquidating insurance policies, withdrawing savings, borrowing on margin, and leveraging existing assets just to stay in the rally.”