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South Korean retail investors pull record Kospi selling after July plunge

The Kospi still ended July down 22%, and trading was halted four times during the month as circuit breakers hit a record run.

Reported · Written up by our desk · Asia

South Korea’s retail investors have intensified selling of Kospi shares after a sharp July reversal left even veteran traders rattled, according to LiveMint Markets. The outlet reported that retail investors sold a record amount of Kospi shares on Friday despite an 18% rebound.

Despite the rebound, the Kospi capped a 22% loss for the month, the steepest since the global financial crisis, with trading in Kospi stocks halted four times during July. Social media frustration has largely targeted the government, as traders weigh whether volatility has exceeded their tolerance for risk.

LiveMint Markets said retail investors had piled about 78 trillion won into Kospi shares over May and June, encouraged by President Lee Jae Myung’s stock market reform drive and the debut of single stock leveraged ETFs. Those leveraged ETFs, introduced in late May to broaden opportunities and address outflows into similar products abroad, have since become a focal point for criticism for amplifying swings.

The outlet also tied the July volatility to highly AI linked names, noting Samsung Electronics and SK Hynix are among the biggest beneficiaries of the AI frenzy. It said the two stocks together account for more than 50% of the Kospi, with Samsung down 21% in July while still up more than four times since the start of 2025, and SK Hynix down 35% in July but up nearly 10 times over the same period.

Latest closeKospi 5,593.56 ▼1.2%

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