On July 16, the South Korean stock market's storage chip sector has been weakening recently. The market's reevaluation of AI computing power demand, combined with concerns over the industry cycle and the potential tightening of leverage trading policies in South Korea, has become a major reason for the stock price correction. Industry insiders point out that the storage chip sector has historically exhibited significant cyclical characteristics: during periods of industry prosperity, manufacturers often expand production capacity simultaneously, leading to a substantial release of new capacity that causes prices to plummet and the industry to fall into losses. Following a contraction in capital expenditure and a rebalancing of supply and demand, a new cycle of prosperity typically begins. Reports of Meta planning to lease idle computing resources have raised concerns about overinvestment in AI infrastructure, and this sentiment has quickly spread to the global storage chip sector. Major industry players such as SanDisk, Micron Technology, Seagate Technology, and Western Digital have seen their stock prices drop by over 20% in recent weeks, negatively impacting the performance of related South Korean storage chip stocks. Meanwhile, U.S. President Trump recently stated that Micron plans to invest $250 billion in expanding domestic storage chip manufacturing in the U.S. to strengthen supply chain security. Additionally, the risk appetite in the South Korean market is also influenced by policy factors. The Bank of Korea announced today an interest rate hike of 25 basis points to 2.75%, marking the first increase since January 2023, in line with market expectations. At the same time, the Korea Financial Investment Association revealed that large local asset management institutions are discussing investor protection measures for individual stock leveraged ETFs, including raising minimum margin requirements and optimizing rebalancing mechanisms, with the margin requirement for South Korean leveraged chip ETFs potentially increasing to five times the current level, further exacerbating market caution regarding the funding situation in the chip sector.