South Korean Retail Investors Surrender to Market Panic, Net-Sell 3.24T Won on July 29

According to Korea Exchange, individual investors net-sold 3.24 trillion won on the KOSPI market today (July 29), marking a striking reversal from their traditional buy-the-dip behavior during previous circuit breaker events. The shift reflects capitulation as back-to-back circuit breakers triggered unprecedented market panic, with investors locking in losses rather than betting on rebounds.

However, margin loan balances remain elevated at 33.19 trillion won as of July 28—only a 12% decline from the July 2 peak of 37.72 trillion won—despite KOSPI and KOSDAQ losing 25% in combined market capitalization. Citigroup estimates that only approximately 65% of margin positions have been liquidated, signaling further forced selloffs and volatility ahead.