Korean retail investors are accelerating their exit from the stock market, with their trading share falling to a six-month low

Odaily News: The Korea Exchange said on Tuesday that Korean retail investors are rapidly withdrawing from the stock market as sharp market volatility dampens investor sentiment. Data shows that in July, retail investors accounted for approximately 31.2% to 31.5% of trading volume on the Korea Composite Stock Price Index (KOSPI), down significantly from 48.1% in January. Within just six months, this share dropped by roughly 16 to 17 percentage points.

The Korea Exchange noted that even a slight rebound in the index now triggers sell-offs, as investors look to recover their principal and exit, accelerating capital outflows from the domestic market. Since June, retail investors have ceased to be the dominant force in market trading. In July, foreign investors accounted for approximately 38% to 39% of KOSPI trading volume, clearly surpassing retail investors. Analysts point out that the KOSPI index's heavy reliance on two leading companies, Samsung Electronics and SK Hynix, is a major reason driving retail investors away from the Korean market. (Jin Shi)