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Kospi plunges 30% from June peak as retail-led trading culture bites
South Korea’s Kospi has fallen 30% since June 19, and the slump has been linked to losses in leveraged products, rising stress, and a police arrest in Busan tied to a stabbing involving a stock YouTuber.
South Korea’s Kospi benchmark has slid about 30% from its June 19 peak, deepening political pressure on President Lee Jae Myung’s government and intensifying scrutiny of a retail-driven trading culture, Reuters reports via SCMP Economy. The decline has raised questions about whether the country can progress toward developed market status while retail investors engage in highly leveraged bets.
The reporting says the government’s push to reduce regulatory taboos and encourage bolder investing helped set the stage for what locals describe as “ants,” retail traders who swarm into trades. Beyond financial losses, Jeon Suk-jae, a YouTuber with a 3.7 million subscriber investment channel, warned that many entrants may have suffered severe losses and could become so traumatised that they lose interest in investing altogether.
The article also highlights a broader psychological and public health impact, saying demand for psychiatric help is rising and other signs of stress are rattling the public. In Busan, police said they arrested a man in his 20s suspected of attempted murder after a stabbing of a YouTuber that the suspect allegedly blamed for stock losses.
Latest closeKospi 6,813.34 ▲3.6%