Institutions and Foreigners Record Net Sales of 166.1 Billion and 171.9 Billion Respectively
Assemblywoman Yang Jeong-suk: "Concentrated Selling by Institutions and Foreigners Requires Financial Authorities' Investigation"
During the eight consecutive days of sharp declines in eight stocks due to the sell-off of 'Societe Generale (SG) Securities,' individual investors were found to have purchased more than 300 billion KRW worth of these stocks.
On the 9th, the office of Representative Yang Jeong-suk, a member of the National Assembly's Political Affairs Committee, announced based on data from the Korea Exchange that individual investors bought a total of 332.33 billion KRW worth of the eight stocks from the first day of the incident on the 24th of last month until the 4th of this month.
In contrast, during the same period, institutional and foreign investors sold net amounts of 166.12 billion KRW and 171.95 billion KRW, respectively.
The stock most purchased by individual investors was Samchully, with net purchases amounting to 83.72 billion KRW. Other stocks included Daou Data (62.22 billion KRW), Harim Holdings (52.29 billion KRW), Seoul Gas (38.24 billion KRW), Daesung Holdings (35.22 billion KRW), Sebang (30.34 billion KRW), and Seonkwang (30.3 billion KRW). Daol Investment & Securities recorded a net sale of 5.67 million KRW amid a flood of sell orders.
Conversely, foreign investors sold stocks such as Harim Holdings (-44.71 billion KRW), Samchully (-39.45 billion KRW), and Daou Data (-31.95 billion KRW), while institutions also heavily net sold Samchully (-43.89 billion KRW), Daou Data (-34.24 billion KRW), and Seoul Gas (-31.59 billion KRW).
As these stocks repeatedly plummeted over a long period, individual investors appeared to perceive them as having become "as cheap as they can get," prompting low-price bets. The partial liquidation of credit transaction volumes through forced sales also seemed to stimulate retail investors' sentiment.
However, since these stocks have recorded the lower price limit for an extended period without establishing a clear direction, the prevailing opinion is that betting for short-term gains is risky.
Representative Yang Jeong-suk stated, "Individual investors, who had no information about stock price manipulation, focused on net buying from the 24th when the eight stocks began hitting the lower price limit, but institutions and foreigners, who possessed related information, concentrated their sales and shifted losses onto individuals. It is necessary for financial authorities to investigate whether institutions and foreigners used unfair information, and if illegal activities are found, they must be met with stronger and stricter penalties than ever before."
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