South Korean retail investors experienced substantial losses in July's Kospi market reversal. Many traders are now vowing to avoid the Korean stock market altogether. The market experienced record circuit-breaker suspensions, reflecting extreme volatility. Government-introduced leveraged ETFs are blamed for amplifying these wild market swings. This period saw a dramatic unraveling after months of prior market optimism.

South Korea's stock market staged its sharpest reversal on record on Friday, capping a month of wild swings.

South Korea's roller-coaster stock market in July has prompted calls for tighter scrutiny of overly bullish brokerage research and stricter margin-lending rules