KOSPI Triggers "Daily" Circuit Breakers as High Volatility Attracts Retail Investors, Making Korean Stock Trading a "Squid Game"

BlockBeats News, July 7th, The Wall Street Journal yesterday published an article analyzing the recent high volatility of the South Korean stock market. The article cited data indicating that in the past year, the South Korean KOSPI index experienced a single-day volatility exceeding 2% a total of 77 times. In comparison, the major U.S. stock index S&P 500 only had such intense volatility 5 times. The number of days the KOSPI saw a single-day volatility exceeding 3% was 44 days, while the S&P 500 never exceeded 3%. The KOSPI had 23 days with a single-day volatility exceeding 5%.

The report stated that this volatility has become one of the factors attracting many South Korean retail investors who trade purely for the sake of trading. Maxence Visseau, the founder of the macro and quant hedge fund Arkevium Capital, commented: "For those thrill-seeking retail investors, volatility is the key attraction for them."

The report also pointed out that foreign capital outflows in the first half of this year exceeded $100 billion, with $30 billion flowing out in June alone. This trend "may ultimately lead to losses for local investors."