South Korean retail investors face heavy losses as Seoul market plunges 17% in three days

South Korea’s equity markets have suffered a severe correction, with the benchmark index falling more than 17% over a three-day period.

The sharp decline has disproportionately impacted retail investors, who have borne the brunt of the losses due to high levels of margin borrowing and concentrated exposure to the semiconductor sector.

The sell-off was driven by heavy selling in the country’s two largest chipmakers, Samsung Electronics and SK Hynix.

According to reports from VG, many small investors had leveraged their positions significantly, effectively treating the market like a casino.

This high leverage amplified the downside when prices turned, leading to forced liquidations and further downward pressure on the index.

The turmoil comes amid growing concerns about the stability of South Korea’s financial system.