South Korean retail investors lost approximately $250 million to fraud in the first half of 2026, a 19.8% increase from the same period the previous year. Stock tip chatroom scams accounted for the bulk of losses, with police investigating 3,506 cases, up 4.1% year-over-year. The KOSPI index, which roughly doubled in early 2026 before plunging 44% from its June 19 peak, created fertile ground for scammers as inexperienced investors rushed in during the rally and became vulnerable during the crash. Fraud tactics have shifted from crypto and real estate to stock-related schemes, with scammers using AI-generated investment tips and offshore infrastructure. One operation linked to Cambodia defrauded 59 victims of approximately 9.9 billion won (roughly $7.2 million) over two years.
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