South Korean Retail Investors Record Widespread Losses in H1 2026 Despite Record Market Rally

According to analysis by Maeil Business Newspaper, South Korean retail investors suffered significant losses in the first half of 2026 despite the historic rally in the KOSPI index, with most popular stocks excluding semiconductor leaders delivering negative returns.

Kakao, the 45th most-purchased stock among retail investors, recorded an average loss of 52.7% in H1, with 99.9% of investors recording losses. SK Square, despite an extraordinary average return of 227.2%, saw 59.8% of retail investors posting losses as they entered near the stock's peak after an initial rally and subsequent 30% correction. Similarly, Hanwha Aerospace posted an average return of 130.1% but had 73.5% of retail investors in losses after surging from 940,000 won to 1.537 million won in April before falling 33% from its peak. Most severely, the KODEX Samsung Electronics Leverage ETF recorded 100% loss ratio among retail investors in June.