Retail investors became an influential force in the local financial market in the first quarter of 2020, with foreign and institutional investors cutting down in their activities due to the COVID-19 pandemic.
Massive buying of Korean stocks by retail investors offset the exodus of foreign investors from the market due to the pandemic.
In March, retail investors purchased 11.4 trillion won of stocks as foreigners sold stocks worth over 12.8 trillion won.
Retail investors also helped Shinhan Investment achieve a brokerage commission profit of 143.2 billion won in the first quarter, up 70.7 percent from the previous quarter.
KOSPI took a beating in March due to foreign binge selling, which retail investors identified as an opportunity to purchase promising stocks at a lower price.
Meritz Securities economist Kang Bong-joo observed that retail investors had exhibited their clout by engaging buying of local stocks worth more than 25 trillion won at the start of 2020 as foreigners sold over 19 trillion won. Consequently, retail investors have prevented the main bourse from collapsing further in March when the impact of the pandemic when virus-reached its peak.
In mid-March, the KOSPI dipped below the 1,500-mark, the first time since July 2009, as foreigners went on a selling spree due to fears over COVID-19.
The index has since recovered to surpass 1,900 points, closing at 1,947 Wednesday, a 0.7 percent improvement from the previous trading day.
The index has reached a high of around the 2,200-mark this year.
Kang added that the influence of retail investors would not be a temporary phenomenon as they are constantly eager to learn more about investment opportunities.


Mexico's Undervalued Equity Market Offers Long-Term Investment Potential
Do investment tax breaks work? A new study finds the evidence is ‘mixed at best’
SK Hynix Q2 Profit Hits Record as AI Memory Chip Demand Fuels Growth
KiwiSaver shakeup: private asset investment has risks that could outweigh the rewards
Toyota First-Half Global Sales and Production Decline on Weak China Demand, RAV4 Transition
Rio Tinto Stock Jumps as Strong Earnings, Higher Dividend and AI Metal Demand Boost Outlook
Russia Charges Telegram Founder Pavel Durov With Facilitating Terrorism, Seeks International Arrest
Ferrari Group to Launch IPO in Amsterdam, Targets Over $1 Billion Valuation
Why your retirement fund might soon include cryptocurrency
Standard Chartered Beats Profit Forecasts as First-Half Earnings Rise 9%
U.S. Banks Report Strong Q4 Profits Amid Investment Banking Surge
Unilever Raises 2026 Sales Outlook After Strong Q2 Volume Growth
South Korea to End Short-Selling Ban as Financial Market Uncertainty Persists
Home ownership is slipping out of reach. It’s time to rethink our fear of ‘forever renting’
GSK Unveils $2.52 Billion Cost-Cutting Plan to Accelerate Drug Pipeline
European Stocks Rally on Chinese Growth and Mining Merger Speculation
Arm Holdings Q1 Earnings Beat Estimates, Strong Q2 Outlook Fails to Lift ARM Stock 



