South Korea’s financial regulators have vowed to curb short-term speculation by retail investors, as their bets on tech stocks fuel fears of a market bubble. Retail investors have made big bets on themes including electric vehicle battery materials, quantum computers and superconductors, making the tech-heavy Kosdaq one of the world’s best performers this year.
Heavy retail buying of anything related to electric vehicle batteries has helped the Kosdaq gain about 20 per cent in the year to date, more than double the 8 per cent rise in the benchmark Kospi Composite index. “Many retail investors pursue a ‘high-risk high-return’ strategy, spurred on by sensational news and tips from YouTubers, Telegram and other social media,” said Lee Seung-hoon, head of research at IBK Investment & Securities.