After falling more than 5% on the 3rd, South Korea's KOSPI Index fluctuated sharply in the intraday market on the 4th. At one point, it rose more than 2% to fell by more than 2%, and finally closed up 1.62% to 6358.95 points. On the 4th, South Korea's Finance Minister Koo Yun-cheol said at a cabinet meeting that the South Korean government will work to mitigate fluctuations and ensure long-term structural stability, and promised to quickly implement the recently announced supplementary measures for single-leveraged ETFs to limit the impact of such products on the market. However, the market is still divided on whether deleveraging actually “comes to an end.” Bloomberg published an article on August 4 arguing that “unless these products themselves stop trading, their negative effects will continue,” adding that “Korea is becoming unsuitable for investment.” Lale Akoner, a London-based global market analyst at social investment platform eToro Group, also said, “Deleveraging is unlikely to be resolved within a few days, so investors should expect further sharp fluctuations in technology and semiconductor stocks in the next few months.” In addition to leveraged capital, retail sentiment has also become an important variable affecting the Korean stock market. After experiencing a sharp rise and fall that continued for more than a month, the confidence of retail investors in South Korea was hit hard, and depression was everywhere on social media. According to the “Chosun Ilbo” on August 4, statistics from the Korea Financial Investment Association show that in July, the total number of forced liquidations due to unsettled securities transaction arrears reached 992.8 billion won. According to a report by the US “Fortune” magazine on August 2, retail investor Mr. Kim said, “I am completely held hostage by that fanaticism. Now, to be honest, I'm scared. I've set myself two rules. First: Don't invest in the Korean stock market. Second: Follow the first rule.”

After falling more than 5% on the 3rd, South Korea's KOSPI Index fluctuated sharply in the intraday market on the 4th. At one point, it rose more than 2% to fell by more than 2%, and finally closed up 1.62% to 6358.95 points. On the 4th, South Korea's Finance Minister Koo Yun-cheol said at a cabinet meeting that the South Korean government will work to mitigate fluctuations and ensure long-term structural stability, and promised to quickly implement the recently announced supplementary measures for single-leveraged ETFs to limit the impact of such products on the market. However, the market is still divided on whether deleveraging actually “comes to an end.” Bloomberg published an article on August 4 arguing that “unless these products themselves stop trading, their negative effects will continue,” adding that “Korea is becoming unsuitable for investment.” Lale Akoner, a London-based global market analyst at social investment platform eToro Group, also said, “Deleveraging is unlikely to be resolved within a few days, so investors should expect further sharp fluctuations in technology and semiconductor stocks in the next few months.” In addition to leveraged capital, retail sentiment has also become an important variable affecting the Korean stock market. After experiencing a sharp rise and fall that continued for more than a month, the confidence of retail investors in South Korea was hit hard, and depression was everywhere on social media. According to the “Chosun Ilbo” on August 4, statistics from the Korea Financial Investment Association show that in July, the total number of forced liquidations due to unsettled securities transaction arrears reached 992.8 billion won. According to a report by the US “Fortune” magazine on August 2, retail investor Mr. Kim said, “I am completely held hostage by that fanaticism. Now, to be honest, I'm scared. I've set myself two rules. First: Don't invest in the Korean stock market. Second: Follow the first rule.”