Korean retail investors lost $250 million from scams during stock swing

South Korean retail investors lost approximately $250 million through scams during the first half of 2026, according to police data. The number of cases increased by 4.1% compared to the same period last year, but the total amount of money involved rose by 19.8%. Scammers capitalized on market volatility, particularly the KOSPI rally, to deceive inexperienced investors.

Various tactics, such as leaving comments on analyst videos or sending lures in chatrooms, were employed to convince investors to transfer funds. Victims, often driven by fear of missing out, parted with their money for stock recommendations or investments. Several lawyers noted that scammers took advantage of investors' psychology during market turbulence, preying on their vulnerabilities.