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

South Korean retail investors lost roughly US$250 million to scams during the first half of 2026, according to police data. The number of stock tip chatroom-related cases investigated by police rose by 4.1% from the same period last year, but the total amount involved increased by 19.8%. Police investigated 3,506 cases that involved 336 billion won from January to June.

The KOSPI, South Korea's stock market, was the world's best-performing stock benchmark in the first half but lost as much as 44% from its June 19 peak. Scammers exploited market volatility to target retail investors, preying on their fear of missing out on the market rally. Several lawyers specializing in financial fraud told Reuters that inexperienced retail investors were particularly vulnerable to these scams.