South Korea’s push to create a more dynamic and globally competitive stock market has instead exposed the risks of aggressive retail speculation, leaving investors facing substantial losses and raising questions about the country’s financial market reforms.
The KOSPI benchmark has fallen about 30% from its June 19 peak, according to Reuters, dealing a political setback to President Lee Jae Myung’s government and intensifying scrutiny of an investment culture that encouraged retail investors to take on increasingly complex and leveraged products.
