Individual investors in South Korea conducted a mass exodus from the stock market over three trading days from the 21st to the 23rd, net selling 6.8 trillion won in Korean stocks despite the KOSPI index rebounding above 7000 points. The selling wave was triggered by extreme volatility that saw the KOSPI plunge to the 6400 level on the 20th - a drop of over 30% from its peak of 9385.59 points recorded on the 19th. The Korean stock market experienced sharp declines due to Middle East geopolitical risks and concerns over hyperscaler investment slowdown following China's release of low-cost AI models, creating widespread fear among retail investors who proceeded with both profit-taking and loss-cutting sales even during the subsequent rebound.
Individual Investors Net Sell 6.8 Trillion Won Over Three Days
According to the Korea Exchange, individual investors net sold 6.8 trillion won in the securities market during the three trading days from the 21st to the 23rd. During this same period, foreign investors purchased 6.8 trillion won, showing a complete reversal in positioning.
Individual investors recorded net sales of 2.2 trillion won on the 21st, 1.9 trillion won on the 22nd, and 2.5 trillion won on the 23rd, continuing their large-scale selling for three consecutive days.
Samsung Electronics and SK Hynix Lead Sell-Off
The stocks most heavily sold by individual investors during this period were Samsung Electronics (negative 2.1573 trillion won), followed by SK Hynix (negative 1.8059 trillion won), Samsung Electronics preferred shares (negative 202.6 billion won), SK Eternix (negative 186.7 billion won), and Samsung Electro-Mechanics (negative 181 billion won).
Leveraged ETFs also saw significant outflows, with KODEX SK Hynix Single Stock Leverage (negative 144.4 billion won) and KODEX Samsung Electronics Single Stock Leverage (negative 88.5 billion won) ranking among the top net sales by individual investors.
The KOSPI opened at 6963.35 on the 23rd, up 165.65 points (2.44%) from the previous trading day.
Investment Deposits Drop 33 Trillion Won in One Month
Investment standby funds decreased rapidly. Investor deposits, which reached approximately 139 trillion won at the beginning of last month, fell to around 106 trillion won as of the 21st, representing an outflow of approximately 33 trillion won within one month.
Credit Balance Declines 5 Trillion Won
The scale of margin trading also decreased noticeably. Credit transaction balance fell from approximately 38 trillion won at the end of last month to around 33 trillion won recently, a reduction of approximately 5 trillion won. This decline is attributed to forced liquidations and credit repayments during the market crash.
An official from the financial investment industry stated that individual investors repeatedly fail to overcome fear during sharp market declines and resort to selling, noting that investor sentiment has significantly weakened as selling continues even during the rebound process.
FAQ
How much did individual investors sell in Korean stocks over three days?
Individual investors net sold 6.8 trillion won in the Korean securities market over three trading days from the 21st to the 23rd. This included 2.2 trillion won on the 21st, 1.9 trillion won on the 22nd, and 2.5 trillion won on the 23rd.
What caused the KOSPI to drop to 6400 on the 20th?
The KOSPI fell to the 6400 level on the 20th due to Middle East geopolitical risks and concerns over hyperscaler investment slowdown following China's release of low-cost AI models. The index had dropped over 30% from its peak of 9385.59 points recorded on the 19th.
How much did investor deposits decrease in one month?
Investor deposits decreased by approximately 33 trillion won within one month, falling from around 139 trillion won at the beginning of last month to approximately 106 trillion won as of the 21st.
