The Korea Composite Stock Price Index, or KOSPI, has lost a quarter of its value since late June, entering a bear market. On the 14th, the KOSPI fell below 7,000, marking a roughly 25 percent drop from its all-time closing high of 9,114.55. With Samsung Electronics and SK Hynix accounting for just over half of the total market capitalisation, retail investors' margin trading has ballooned, prompting the Financial Supervisory Service to announce an investigation into excessive marketing. Foreign investors have pulled out around 110 billion dollars this year, while retail margin debt hit a record 29.8 trillion won on June 24th. The KOSPI volatility index reached an all-time high of 97.99 on June 29th and remained elevated at 82.07 on the 14th.
SK Hynix IncFinancial Supervisory Service announces investigation into excessive margin trading, which may affect SK Hynix as a major component of KOSPI.
Samsung Electronics Co LtdFinancial Supervisory Service announces investigation into excessive margin trading, which may affect Samsung Electronics as a major component of KOSPI.