South Korean market authorities are weighing a more aggressive plan to stabilize the Kospi after July's record selloff sent the main equity index slicing through its 50-, 100- and 200-day moving averages like butter.
At the center of the meltdown is retail participation in leveraged ETFs tied to Samsung Electronics and SK Hynix, which amplified the selloff and inflicted crushing losses on Korean households.
Korean trader had a $5 million stock portfolio ALL IN Samsung and Hynix.
— emini tic (@TicTocTick) July 29, 2026
It ended very badly.
Take a look. pic.twitter.com/dkqBZ9lMf8
Overnight trading in Asian equities struggled to find a proper floor as South Korean stocks kept volatility high and mom-and-pop retail traders horrified that their leveraged bets have been all but wiped out. The Kospi erased gains as much as 5.5%, closing down about 1% despite Samsung's confirmation of massive profits.
Bloomberg reports that as retail losses mount and public anger builds, there is political pressure on the government that encouraged households to participate in the AI stock mania of Samsung Electronics and SK Hynix.
"This is a headwind for a government that ac
