Korean retail investors saw their brokerage deposit accounts drop from a record 139.6 trillion won to 118.2 trillion won within one month, according to the Korea Financial Investment Association. The decline occurred as individuals purchased 55.2 trillion won worth of stocks to offset foreign selling, while leveraged exchange-traded funds tracking Samsung Electronics and SK Hynix plunged 42-43% over five trading days. The sharp losses came despite Samsung Electronics reporting record quarterly earnings, with the stock falling 6.9% and SK Hynix declining 6.1%.
Korean Investor Deposits Fall 21 Trillion Won in One Month
Investor deposit accounts reached 139.6 trillion won on the peak date, then declined to 118.2 trillion won, a decrease of over 20 trillion won within approximately one month. On one trading day, individual investors sold 2.5 trillion won worth of securities and 1 trillion won worth of ETFs, yet deposit accounts decreased rather than increased. The Korea Financial Investment Association reported these figures.
Foreign investors have maintained net selling in KOSPI since June 19, with combined alternative exchange data showing over 8 trillion won in net selling on a single day. Individual investors purchased 55.2 trillion won worth of stocks during this period to support the market.
Samsung and SK Hynix Leveraged ETFs Drop Below Listing Price
Thirteen out of fourteen single-stock leveraged ETFs tracking Samsung Electronics and SK Hynix fell below their listing price of 20,000 won. The Korea Exchange reported these figures based on closing prices. The ETFs declined 12-13% in one trading session.
The only ETF that remained above 20,000 won, 'KODEX SK Hynix Single Stock Leverage,' closed at 19,635 won after falling 11.27%. 'TIGER Samsung Electronics Single Stock Leverage' (14,850 won) and 'ACE Samsung Electronics Single Stock Leverage' (14,805 won) fell to the 14,000 won range, showing maximum declines of 27% from listing price.
These leveraged ETFs lost 42-43% in returns over five trading days this month, nearly halving in value within approximately one week.
Analysts Await US Tech Company Earnings for Market Direction
Kiwoom Securities lowered its target price for Samsung Electronics from 430,000 won to 390,000 won, while KB Securities raised its target from 550,000 won to 600,000 won, reflecting divided analyst opinions.
Lee Jae-won, a researcher at Yuanta Securities, stated that AI infrastructure investment outlook from hyperscalers (large-scale data center operators) in their second-quarter earnings at the end of July is essential. Lee said the judgment is that the possibility of downward adjustment in capital expenditure is low.
Market attention has shifted to US Big Tech earnings announcements starting at the end of this month. Microsoft, Meta, Amazon, and Alphabet are expected to provide signals about AI infrastructure investment scale. If these companies announce expanded or maintained investment, semiconductor sector sentiment could recover, but signals of investment slowdown could increase volatility in domestic semiconductor stocks.
FAQ
Why did Korean investor deposit accounts decrease despite stock selling?
The Korea Financial Investment Association reported that deposit accounts fell from 139.6 trillion won to 118.2 trillion won as individual investors used cash reserves to purchase 55.2 trillion won worth of stocks to offset foreign selling pressure since June 19.
How much did Samsung and SK Hynix leveraged ETFs lose?
Thirteen out of fourteen single-stock leveraged ETFs tracking Samsung Electronics and SK Hynix fell below their 20,000 won listing price, with returns declining 42-43% over five trading days, according to the Korea Exchange.
What are analysts watching for market direction?
Yuanta Securities researcher Lee Jae-won stated that AI infrastructure investment outlook from US hyperscalers (Microsoft, Meta, Amazon, Alphabet) in their second-quarter earnings at the end of July will be essential for determining semiconductor stock direction.
