ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

South Korean retail investors eye 'meme' stocks for high returns

Financial regulator, experts, warn of risks from rumor-fueled volatility

A currency trader watches market movement at KEB Hana Bank headquarters in Seoul on Sept. 7, 2023. The tech-focused Kosdaq has jumped more than 35% so far this year.   © AP

SEOUL -- Young retail investors in South Korea, dissatisfied with staid blue-chip shares like Samsung Electronics and Hyundai Motor, are flocking to "meme" stocks in hot science and technology sectors, brushing off warnings from officials on the dangers of rumor-driven trading.

The share price of Duksung, a small textile company based in Suwon, south of Seoul, more than tripled over two weeks in August on a rumor that it might benefit from superconductor technology. But the stock ended up losing half its value from that peak in just a few days. Similar fates have befallen other small stocks, as market chatter over possible gains stemming from new developments in science and technology sent prices on a roller coaster ride.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more