Domestic retail investors have stepped in aggressively, buying KRW 42.4 trillion in June as margin financing for KOSPI stocks remained elevated in July.
Foreign investors have withdrawn nearly $110 billion from South Korean equities this year, marking a record outflow as they moved to avoid portfolio imbalances after the market’s rapid rise. Domestic retail investors have countered that selling pressure, buying KRW 42.4 trillion in June and a net KRW 13.2 trillion of KOSPI stocks so far in July. Leverage has also stayed high, with margin financing for KOSPI stocks at KRW 28 trillion on July 14 after reaching a record KRW 29.8 trillion on June 24, underscoring strong retail participation in the benchmark market.