"I Held On, Trusting Samsung Electronics and SK hynix" ... Retail Investors Forced Into Tearful Sell-Off as KOSPI Trading Value Falls From 51 Trillion Won to 33 Trillion Won

[Financial News] As the funding power that had supported the domestic stock market weakens, concerns are growing over volatility in the KOSPI market. With questions over AI profitability colliding with uncertainty surrounding the Middle East war, trading value and investor deposits have also declined, adding to supply-demand pressure.
According to the Korea Exchange on the 21st, trading value in the KOSPI market stood at 33.2087 trillion won the previous day. That was down 35.9% from 51.8114 trillion won on the 1st. Trading value, which had exceeded 92 trillion won in May, has recently fallen back to the 30 trillion won range.
It is difficult to explain the decline in trading value solely by falling stock prices. On April 27, when the KOSPI index was at a similar level in the 6,600 range, the closing price was 6,615.03 and trading value was 51.012 trillion won. As a result, some in the market say the inflow of funds itself may have weakened.
The same weakening in supply and demand was also seen in investor deposits. According to the Korea Financial Investment Association, investor deposits stood at 108.0819 trillion won as of the 16th. Deposits, which had climbed to nearly 140 trillion won last month, fell to 120.0837 trillion won on the 1st of this month and then declined further.
The buying strength of individual investors has also weakened compared with before. From the 13th through the 21st, individuals posted net purchases of 1.293 trillion won. That was smaller than the 3.6748 trillion won in net buying recorded in the previous week, from July 6 to 10.
In addition, the so-called margin investing, in which individuals borrow money to invest, has also shrunk. As of the 16th, credit loan financing stood at 33.3624 trillion won, down 10.65% from 37.3393 trillion won on the 1st.
Still, as the supply-demand gap widens, the financial investment industry sees a recovery in foreign buying as a key variable. During the KOSPI's earlier gains, individual investors had played the role of absorbing foreign selling.
The financial investment industry says the direction of foreign flows depends on Samsung Electronics and SK hynix. Foreign ownership in SK hynix is around the average level, while Samsung Electronics has fallen to a lower level than in the past. As of the 16th, foreign ownership stood at 46.6% for Samsung Electronics and 52.44% for SK hynix.
[email protected] Han Seung-gon Reporter