Crushed by Kospi rout, angry South Koreans rip government and vow not to buy
The dramatic unravelling in July followed months of optimism that had built around South Korean equities.
South Korea's retail traders, known for their risk-taking, experienced a crushing reversal in the Kospi stock index in July. This volatility exposed the limits of their tolerance. Some traders, like Kim Han-kyung, vowed never to invest again, while others likened the market to a casino. Retail investors sold record amounts of Kospi shares despite a 22% loss for the month, the steepest since the global financial crisis.
The government's stock-market reform drive and the debut of leveraged ETFs were blamed for amplifying the volatility. Trading in Kospi stocks was halted four times due to circuit-breaker suspensions. The government promised additional measures to stabilise the market, but many believe the steps came too late. The AI boom that fueled South Korea's rally remains intact, but July served as a harsh lesson that the same forces capable of delivering outsized gains can also unravel quickly.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- South Korean stablecoin outflows top $367M in June: Report cointelegraph.com
- South Korean shares soar after chip stock rout bbc.co.uk
- South Korean battery makers return to Q2 profit techinasia.com
