Kospi Rally Triggers Record Retail Net Selling This Month

Retail investors appear to be taking profits after net selling 14.7 trillion won this month

South Korea’s benchmark Kospi has rebounded this month, briefly topping 6,500 intraday, but retail investors have become net sellers on a record scale.

According to the Korea Exchange, individual investors were net sellers of 14.767 trillion won ($10.2 billion) on the main board from the start of the month through April 24. That surpassed the previous record of 10.4858 trillion won set in September 2025. If the selling persists through the end of April, the monthly record will likely be broken again.

The Kospi on April 21 topped the previous all-time high set before the outbreak of the Iran war, reaching a fresh record for the first time in two months. The index then rose for three straight trading sessions through April 23. At its intraday high, it also crossed 6,500. Retail investors appear to have used the rally as an opportunity to lock in profits. Foreign investors, by contrast, were net buyers of 2.53 trillion won ($1.75 billion) on the main board this month.

Retail investors concentrated their profit-taking in Samsung Electronics and SK Hynix, both of which recently hit record highs. Korea Exchange data show Samsung Electronics was the stock most heavily sold on a net basis by individuals through April 24, totaling 6.581 trillion won ($4.54 billion). SK Hynix ranked second at 2.498 trillion won ($1.72 billion). Together, the two stocks accounted for 62% of individual investors’ net selling this month.

There were also signs that retail investors were positioning for a decline in the Kospi. The exchange-traded fund most heavily bought on a net basis by individuals through April 24 was KODEX 200 Futures Inverse 2X, with net purchases of 540.2 billion won ($373 million). Individuals also made net purchases of 165.6 billion won ($114 million) in KODEX Inverse and 6.3 billion won ($4.3 million) in TIGER Inverse.

Brokerages say the Kospi could rise further given recent earnings momentum. If that happens, losses may widen for retail investors who have built up positions in inverse products. Lee Jae-won, an analyst at Yuanta Securities, said an earnings-driven market supported by upward revisions to profit estimates remains intact.

Kang Jin-gyu, Korea Economic Daily reporter josep@hankyung.com