Korean stock market circuit breakers have become "daily routine," high volatility attracting retail investors, and Korean stock trading has turned into "Squid Game."

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Mars Finance News, July 7—The Wall Street Journal published an article yesterday analyzing the recent high-volatility conditions in the Korean stock market. The article cited data showing that over the past year, the Korea KOSPI index recorded 77 days in which daily fluctuations exceeded 2%. In the same period, the U.S. major equity benchmark, the S&P 500 index, saw such drastic volatility only 5 times. There were 44 days when the KOSPI’s daily fluctuations exceeded 3%, while the S&P 500 never exceeded 3%; there were 23 days when the KOSPI’s daily fluctuations exceeded 5%. The report said that this kind of volatility has become one of the factors attracting many Korean retail investors, who trade purely for the sake of trading. Maxence Visseau, founder of the macro and quantitative hedge fund Arkevium Capital, commented: “For retail investors who are pursuing thrills, volatility is precisely the key attraction.” The report also noted that foreign capital outflows exceeded $100 billion (about 154 trillion Korean won) in the first half of this year, with $30 billion leaving the market in June alone. This trend “may ultimately cause losses for local investors.”
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