KOSPI Surges Past 2,900 as Short-Bets Backfire on Individual Traders (Image courtesy of Yonhap)
SEOUL, June 13 (Korea Bizwire) — South Korea’s stock market has soared for six consecutive trading days following the inauguration of President Lee Jae-myung, but retail investors who bet against the rally are now grappling with mounting losses.
The benchmark KOSPI index closed above the 2,920 mark on Thursday, up 8.19% since June 4—Lee’s first day in office—marking the index’s strongest streak in over three years. However, many individual investors who wagered on a market decline are now deep in the red.
According to Koscom’s ETF Check, the most heavily purchased exchange-traded fund (ETF) by retail investors over the past week was KODEX 200 Futures Inverse 2X, a leveraged inverse product tracking the KOSPI 200 index at twice the negative rate. Investors poured ₩195.9 billion into the so-called “geopbus” (a Korean nickname blending ‘leverage’ and ‘inverse’), only to see the fund fall 10.35% during the same period.
Other inverse ETFs also delivered painful returns:
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KODEX Inverse (₩52.5 billion net bought): -5.39%
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KODEX KOSDAQ150 Futures Inverse (₩32 billion): -5.77%
Despite the market’s bullish momentum, retail investors reduced exposure to bullish leveraged ETFs, likely in anticipation of a pullback. During the rally, individuals were net sellers of:
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KODEX Leverage (₩191.2 billion sold)
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KODEX KOSDAQ150 Leverage (₩165.4 billion sold)
In contrast, institutional investors seized the opportunity, scooping up the same leveraged ETFs and realizing double-digit gains. Over the past week, institutions net bought ₩193.2 billion of KODEX Leverage and ₩151.9 billion of KODEX KOSDAQ150 Leverage, both yielding over 11% in returns.
Meanwhile, foreign investors focused on TIGER MSCI Korea TR, a fund targeting large-cap Korean equities like Samsung Electronics and SK hynix, with an eye on both capital appreciation and reinvested dividends. Their ₩224 billion net purchase generated a 5.73% gain.
As the post-election optimism drives the market higher, retail investors—many of whom misread the momentum—are being reminded of the perils of betting against political sentiment-fueled rallies.
Ashley Song (ashley@koreabizwire.com)
