South Koreans each hold more than two stock accounts on average, and foreign investors are selling stocks to individual investors in South Korea with leverage.

Recently, the South Korean stock market has repeatedly hit new highs, with the Korea Composite Stock Price Index nearly doubling since the beginning of this year. However, just yesterday, the South Korean composite stock index plunged by more than 8% at one point, triggering the circuit breaker mechanism for the second time this week. In just one week, the South Korean stock market experienced two "roller coaster" trends, attracting global market attention. Data shows that individual investors in South Korea account for a very high proportion of trading. As of June 24, the total number of domestic stock trading accounts in South Korea was 108.77 million, while the total population of South Korea is only over 50 million. On average, each person holds more than two stock accounts, and a large amount of funds flow into the market through high-leverage ETFs. Last week, the hawkish shift in the monetary policy of the Federal Reserve directly suppressed the overvalued technology sector. A report by JPMorgan Chase shows that foreign capital has flowed out of the South Korean stock market by about $95 billion so far this year. At the same time, individual investors have accumulated net purchases of approximately $80 billion this year, becoming the main force supporting the market. This "foreign capital outflow, individual investors levering up" model is prone to trigger forced liquidation during market volatility, leading to partial malfunction of the pricing mechanism.