South Korea's retail traders have long built a reputation for embracing risk. Yet July's punishing reversal in the Kospi has rattled even this battle-hardened cohort, exposing the limits of their tolerance for volatility.
Some, like Kim Han-kyung, a Seoul resident in her late 30s, have resolved never to invest again, while others are comparing the $3.9 trillion market to a casino. Retail investors sold a record amount of Kospi shares on Friday despite a stunning 18% rebound. The gauge still capped a 22% loss for the month, the steepest since the global financial crisis.
