Foreign investors overtook individual traders after six months of market volatility, as rebounds increasingly triggered selling aimed at recovering losses, according to the Korea Exchange.
South Korean individual investors sharply reduced their presence in the domestic stock market in July as volatile trading weakened risk appetite and encouraged exits. The Korea Exchange said retail investors accounted for about 31.2% to 31.5% of trading on the KOSPI in July, down from 48.1% in January, a drop of roughly 16 to 17 percentage points in six months. Even small rebounds are now prompting selling as investors try to recoup their principal and leave the market, accelerating capital outflows from South Korean equities. Since June, individual investors have no longer been the market's dominant trading force, with foreign investors making up about 38% to 39% of KOSPI trading in July.