South Korea holds more than 2 stock accounts per capita. Foreign investors sell retail investors in the South Korean stock market plus leverage

On June 28, South Korea's stock market hit record highs recently, and the South Korean Composite Stock Price Index has nearly doubled this year. However, just yesterday (26th), South Korea's composite stock index fell more than 8% intraday, triggering the circuit breaker mechanism for the second time this week. In just one week, the South Korean stock market experienced two "roller coaster" markets, attracting global market attention. Data shows that South Korea has a very high proportion of retail transactions. As of June 24, the total number of local stock trading accounts in South Korea was 108.77 million, while South Korea's total population was only more than 50 million. Each person held more than two stock accounts, and a large amount of funds poured in through highly leveraged ETFs. Last week, the Federal Reserve's monetary policy turned hawkish, directly suppressing the highly valued technology sector. A report released by JPMorgan shows that foreign investment has flowed out of South Korea's stock market of approximately US$95 billion this year. At the same time, the cumulative net purchases by retail investors during the year were approximately US$80 billion, becoming the main force supporting the market. This model of "selling foreign capital and leveraging retail investors" can easily lead to forced liquidation when the market fluctuates, resulting in partial failure of the pricing mechanism. (CCTV Finance)