The Korea Exchange (KRX) said on Tuesday retail investors are rapidly exiting
the market as sharp volatility erodes sentiment. Retail share of KOSPI turnover
fell to about 31.2–31.5% in July from 48.1% in January, a decline of roughly
16–17 percentage points in six months. KRX said even small rebounds now trigger
selling as individuals try to reclaim capital, accelerating outflows from the
domestic market. Since June retail investors have not been the dominant trading
force; foreigners accounted for about 38–39% of KOSPI turnover in July,
surpassing retail. Analysts say KOSPI’s heavy concentration in Samsung
Electronics and SK Hynix is a key reason retail investors are withdrawing.