June 15, 2020 / 11:37 PM / a month ago

S.Korea says retail investor surge into stocks may heighten volatility

SEOUL, June 16 (Reuters) - South Korea’s vice finance minister warned on Tuesday that the country’s stock market may see increased volatility after a recent surge in the number of retail investors in stocks.

“(Retail investors) are mostly young first-time investors, good at information-gathering and trading online, fast decision makers, and prefer short-term investments,” Kim Yong-beom said in a speech before a policy meeting in Seoul.

Kim said while the widened investor base adds energy to markets with liquidity, it could also “increase volatility”.

Kim also said the government will strengthen monitoring of financial markets and deploy market stabilizing measures as needed, as uncertainties surrounding a second-wave of coronavirus is high. (Reporting by Cynthia Kim; Editing by Muralikumar Anantharaman)

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