On September 28, South Korea’s KOSPI index dropped 2.70%, closing at 6,889.75 points. This decline followed the market reopening after the Chuseok holiday. Foreign investors offloaded stocks worth ₩3.23 trillion, equivalent to $2.4 billion, while institutional investors sold assets totaling ₩1.02 trillion, or $750 million.
In contrast, individual retail investors, often referred to as 'ants,' acted as the primary net buyers. Their activity intensified throughout the trading session. Retail net purchases rose from approximately ₩145 billion, or $106 million, at the start of the day to reach ₩2.21 trillion by the market close.
The sell-off was largely driven by declines in Samsung Electronics and SK hynix, both of which saw their share prices fall by more than 5%. Foreign investors cited the strengthening US dollar and concerns regarding the semiconductor sector as the primary reasons for their exit from the market.
Retail investors have historically adopted this strategy, notably during the 2020 pandemic market crash. However, such 'buy-the-dip' approaches carry risks. Earlier this year, a leveraged ETF tracking SK hynix lost 45% of its value, impacting retail holders who treated the asset as a long-term investment.
