South Korean Retail Investors React to Kospi Volatility

Retail investors attribute their significant financial losses following the AI tech rout to the government's pro-investor policies, amid reports that the South Korean president had previously expressed a desire for a booming stock market.

Recent reports indicate that retail investors' losses were specifically driven by the AI tech rout, while some sources suggest the president had previously sought a strong stock market. Furthermore, investors are now directly attributing their financial setbacks to existing pro-investor policies.

The KOSPI index fell approximately 25% from its recent peak, with a notable intraday loss of up to 11% on July 29 that triggered several temporary trading halts. Amidst the crash, more than 1.2 million leveraged investment accounts faced margin calls, and unverified reports suggest over 360,000 accounts were wiped out in a single day, with 62% of those belonging to investors under 35. In response, an investor group is working to establish a political entity provisionally named the 'People and Shareholders Party.'

The KOSPI index plummeted approximately 25% from its recent peak, driven by AI investment uncertainties and heavy leverage use, including an intraday loss of up to 11% on July 29 that triggered temporary trading halts. Over 1.2 million leveraged accounts faced margin calls, while unverified reports suggest more than 360,000 accounts were wiped out in a single day, with 62% of those belonging to investors under 35. In response, the Korea Shareholder Movement Center has begun accepting registrations for a provisional political party named 'People and Shareholders'.

The KOSPI index fell approximately 25% from its recent peak, experiencing an intraday loss of up to 11% on July 29 which triggered several temporary trading halts. More than 1.2 million leveraged investment accounts faced margin calls, with unverified reports suggesting over 360,000 accounts were wiped out in a single day, 62% of which belonged to investors under 35. In response, the Korea Shareholder Movement Center announced on July 30 that it has begun accepting registrations for a provisional political party named 'People and Shareholders'.

Following the KOSPI's 25% drop from its peak, more than 1.2 million leveraged investment accounts faced margin calls, with hundreds of thousands of retail accounts liquidated — including over 360,000 wiped out in a single day, 62% of which belonged to investors under 35; in response, the Korea Shareholder Movement Center has begun registering members for a new political party, 'People and Shareholders,' as retail investors blame government-approved leveraged ETFs for their losses.

The KOSPI index fell 33% from its June peak — a sharper decline than previously reported — with chipmakers Samsung and SK Hynix responsible for 76% of the $1.59 trillion market value loss; more than 1.2 million leveraged accounts faced margin calls, and hundreds of thousands saw assets liquidated, with 62% of wiped-out accounts belonging to investors under 35, while retail deposits in domestic trading accounts dropped from a record 140 trillion won in early June to 102.8 trillion won, and for the first time since February, retail purchases of U.S. stocks surpassed domestic buying, fueled by disillusionment with the local market.

The KOSPI index fell 33% from its June peak, with chipmakers Samsung and SK Hynix accounting for 76% of the $1.59 trillion market value wipeout, as retail investors faced massive margin calls—over 1.2 million accounts triggered—and hundreds of thousands saw assets liquidated, with more than 360,000 accounts wiped out in a single day, 62% of them under age 35; domestic stock account deposits plunged from a record 140 trillion won in early June to 102.8 trillion won, while retail outflows to U.S. stocks surged to $4.6 billion in July—exceeding domestic purchases for the first time since February—as investors abandoned leveraged ETFs and souring sentiment fueled calls for a new political party,