South Korean retail investors are turning sharply defensive after a severe July sell-off in the Kospi, prompting widespread criticism of President Lee Jae Myung’s policies and vows not to buy stocks again. Multiple outlets report that momentum among “mom-and-pop” traders had been strong earlier, supported by expectations tied to President Lee’s stock-market reform push and the launch of single-stock leveraged ETFs, which made amplified gains more accessible. However, the Kospi’s volatility in July, following the earlier buildup of positions, has left many retail traders disappointed and frustrated.
One outlet reports that retail investors sell a record amount of Kospi shares on Friday even as the index later rebounds sharply, including an 18% rise. Another account describes July’s punishing reversal as a shock that tests even traders known for taking risk. Overall, sources agree the pattern is a rapid shift from heavy buying in May and June—totaling around 78 trillion won—into large-scale selling after the market’s sharp swings.
