South Korea’s retail investors are showing a clear trend of concentrating on the KOSPI market again. According to the Korea Securities Depository, in the first half of 2024, individual investors’ net purchases of KOSPI stocks totaled approximately 35 trillion KRW, marking a year-on-year increase of over 20%.
Experts note that while last year many retail traders favored volatile KOSDAQ stocks,higher interest rates and economic uncertainty have shifted retail money back to large-cap, stable KOSPI stocks.Key blue-chip picks include Samsung Electronics, SK Hynix, and LG Energy Solution — all consistently ranking high on individual investors’ buy lists.
1. From KOSDAQ to KOSPI Data from the Korea Exchange shows that in the first half of 2024,KOSDAQ trading volume dropped by about 15% year-on-year, while KOSPI’s trading volume rose by more than 10%.
This shift reflects a growing preference for larger, more liquid companies with transparent earnings reports and solid dividend policies — providing a psychological safety net for retail investors during uncertain times.
2. Short-Term Trading Mindset Still Strong Despite the move to large caps, the short-term trend-trading mindset remains unchanged. HTS (Home Trading System) data shows that individual investors still account for over 70% of daily trading volume, with day trading and swing trading steadily increasing.
Rather than buying low and holding long term, many Korean retail investors focus on “when the price will rise again” and aim for quick gains.
3. Market Outlook Analysts warn that overreliance on short-term speculation can reduce long-term returns. With ongoing global rate fluctuations and exchange rate risks, the concentration on a few KOSPI blue-chip stocks could face adjustments ahead.
Many Koreans say that “people don’t buy low — they buy high.” Of course, this is not unique to Korea, but the idea of watching the trend and trying to time upward movements is especially strong among Korean retail investors.
I personally prefer buying undervalued stocks, but I also participate in trend trading when the market calls for it. Still, every investor should think seriously about whether they can control their risk exposure.
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