Retail Investors Cut Stock Trading Amid Market Decline

Retail investors are tightening their wallets in the stock market. Just three months ago, the average monthly trading amount per individual was 139.68 million won, but it plummeted to 60.1 million won in September, a 57% decrease. The number of orders and trading customers at brokerage firms has also declined. This trend follows a significant drop in the KOSPI index, which has seen the steepest decline among major global stock markets since June.

On October 20, an analysis of monthly data from major domestic brokerages, including Mirae Asset, Meritz, Hana, and Hyundai Motor Securities, revealed that the average monthly trading amount per retail investor fell from 139.68 million won in June to 60.1 million won in September. The total number of monthly trading customers also dropped sharply from approximately 2.11 million to about 1.32 million.

Other indicators confirm a shift in individual investment behavior. According to data from Brokerage A, the average monthly access frequency to mobile trading systems (MTS) decreased by 29.1%, from 13.4 times in June to 9.5 times in September.

This change coincides with the KOSPI's decline since its peak in June, leading to increased volatility in the stock market. Analysts suggest that weary retail investors have entered a wait-and-see mode. Since June, the KOSPI has experienced the largest drop among major global stock markets, closing at 5,552.74, down 34.49% from the closing price of 8,476.15 on May 29. It has fallen 39.08% from its peak of 9,114.55 recorded on June 22.


As the proportion of monthly rental transactions for apartments in Seoul exceeds half, rising rental prices and loan rates are increasing the financial burden on tenants. The difficulty in finding rental properties, coupled with the rising costs of securing deposits through loans and purchasing homes, raises concerns that more tenants may be forced into monthly rentals. As rental costs rise, the threshold for home ownership for non-homeowners is becoming increasingly difficult to cross.

According to financial sector data released on October 20, the COFIX (Cost of Funds Index), which serves as the benchmark for variable-rate loans, rose to 3.43% in September based on new transactions, up from 3.18% the previous month. This marks the largest increase in nearly four years. Consequently, the variable-rate mortgage rates at the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) have risen to between 4.68% and 6.48%.

The increase in mortgage rates exacerbates the financial burden for non-homeowners looking to transition from renting to buying. With rising rental prices making it harder to secure deposits, tenants are finding it increasingly difficult to maintain their leases or pursue home ownership.

According to KB Real Estate's housing price trend survey, the average rental price for apartments in Seoul reached 722.53 million won in September, a 10.43% increase compared to the same period last year. Even if tenants wish to maintain similar living conditions, they face the challenge of securing larger deposits during lease renewals or relocations.

The combination of rising rental prices and loan burdens is narrowing tenants' housing choices. If they cover increased deposits with loans, their interest burden grows, and if they lack sufficient funds, they may have to switch to monthly rentals. Maintaining a lease requires additional deposits and loan interest, while choosing monthly rentals necessitates managing monthly rent payments, making it difficult to save for home ownership.


South Korea has entered the elite group of leading artificial intelligence (AI) nations alongside the United States, China, the United Kingdom, and Singapore. The country's advancements in developing its own AI models and expanding computing infrastructure through public investment have received positive evaluations.

On October 20, the Boston Consulting Group (BCG) released its "AI Maturity Matrix 2026" report, analyzing AI maturity across more than 75 economies worldwide. South Korea is one of the two economies that newly joined the group of leading AI nations since the first survey in 2024, alongside Japan.

BCG assesses the AI maturity of each economy based on AI exposure and readiness. Countries are classified into categories such as leading nations, competitive nations, practical nations, and emerging nations based on their maturity levels. AI exposure refers to the likelihood that major industries and jobs will be affected by AI, while AI readiness indicates a country's capacity to leverage opportunities created by AI. The analysis of AI readiness is based on the "ASPIRE" framework, which includes six areas: national goals, talent capabilities, policies and regulations, investment, research and innovation, and ecosystem.

BCG noted that South Korea has excelled in developing its own AI models and has been pursuing large-scale public investments to build computing infrastructure and an AI ecosystem. The country also ranked among the top five globally in notable AI model development, according to the "2026 AI Index" from Stanford University's Human-Centered AI Institute.

The survey found that nearly all economies made progress in at least one area of AI readiness. Eight economies, including South Korea and Japan, improved their AI readiness ratings compared to 2024.


As fixed expenses such as monthly rent and loan interest rise, concerns are growing that household consumption may shrink due to stock market adjustments and high inflation. With increasing housing and financial costs, households may significantly reduce discretionary spending on dining, clothing, and leisure activities. If households tighten their budgets, it could delay domestic recovery and place additional burdens on sectors closely tied to daily life, such as small businesses and retail.

According to the Seoul Real Estate Information Plaza, the proportion of monthly rental transactions in Seoul from January to September this year reached 51.0%, up 7.3 percentage points from the same period last year. This marks the first time that the monthly rental proportion has exceeded half during this period.

The increase in the monthly rental proportion is largely attributed to a sharp decline in rental transactions. During the same period, while the volume of monthly rental transactions decreased by 2.8% compared to the previous year, rental transactions fell by 27.5%.

Monthly rental prices have also risen. According to the Korea Real Estate Agency, the average monthly rent for apartments in Seoul last month was 1.661 million won, an increase of 218,000 won from a year ago. The median monthly rent also rose from 1.2 million won to 1.4 million won during the same period.

Since monthly rent is a fixed expense that must be paid each month, if income does not increase alongside it, the amount available for other spending decreases. Transitioning from renting to monthly payments reduces the burden of securing a deposit, but if the savings on loan interest are outweighed by monthly rental expenses, consumer spending capacity may actually diminish.


President Yoon Suk Yeol directed on October 20 that housing supply efforts should not be constrained by existing practices and procedures. He urged officials to minimize the time required for land development, various permits, and construction to launch an aggressive housing supply initiative.

During a Cabinet meeting at the Blue House, President Yoon stated, "Housing stability is a key foundation for improving the quality of life for our citizens."

He diagnosed that since 2022, there has been a significant reduction in housing construction permits centered around Seoul, and delays in new land supply for new towns have led to a structural supply crisis.

He emphasized that to resolve the current real estate issues, which are the result of multiple accumulated factors, consistent market management policies and rapid large-scale housing supply are essential.

President Yoon particularly stressed the importance of actual construction and occupancy over mere announcements of supply quantities. He stated, "What matters is not just declarations about how many units will be built, but the actual construction and occupancy," and called for a reduction in timelines across the entire supply process.