@solarsizzle

In South Korea, where stock exchange users account for 32% of the population, retail investor sentiment significantly amplifies short-term market volatility. Studies suggest that retail investors, driven by behavioral biases like overconfidence and herd mentality, overreact to news and market signals. This heightened sensitivity, combined with their substantial participation, exacerbates price swings, particularly in uncertain periods. Research on markets with high retail involvement, such as South Korea’s, shows that positive sentiment boosts speculative trading, while negative sentiment triggers sharp sell-offs, both intensifying volatility beyond fundamental factors, as observed in various global studies.

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