South Korea's stock market has tumbled into a bear market, sending jitters through the country's army of retail investors who have been major players in recent years, according to a report by Reuters.
The benchmark KOSPI index has fallen over 20% from its peak, meeting the technical definition of a bear market. Retail investors, who poured heavily into stocks during the pandemic rally, now face steep losses. Many have leveraged debt to buy shares, amplifying their exposure to the downturn.
The selloff is fueled by global interest rate hikes, slowing export demand, and political instability in South Korea. Individual investors, who account for a significant portion of trading volume, are expected to face prolonged anxiety if the market does not recover soon.