On Monday the big index, the KOSPI closed down 3.65% (-241.69) at 6,384.24.
From Investing.com, October 10:
South Korean stocks are struggling to attract buyers as enthusiasm for artificial intelligence-related investments fades, triggering heavy foreign outflows and a sharp decline in trading activity.
Trading turnover in South Korea’s $4.3 trillion equity market has plunged 70% from its late-May peak, while the benchmark Kospi has fallen 22% in the second half of 2026, according to Bloomberg.
The reversal follows a first-half rally that made the Kospi the world’s best-performing major equity benchmark, driven largely by demand for AI memory chips.
Samsung Electronics and SK Hynix, which together account for more than half the index’s weighting, have become a source of vulnerability as investors question whether the semiconductor boom can continue.
Foreign investors have withdrawn $131 billion from Korean equities this year, the largest outflow among major Asian markets, according to exchange data compiled by Bloomberg.
Concerns over demand were evident when Samsung shares declined Thursday despite the company reporting a nearly ninefold increase in quarterly operating profit.
Market support from corporate share repurchases is also weakening. Samsung and SK Hynix are approaching completion of combined buyback programmes worth 55 trillion won ($41 billion).
Retail participation has similarly declined following July’s selloff.
Outstanding margin loans have fallen to approximately 33 trillion won from a June peak of 38.6 trillion won, while brokerage deposits have dropped to around 100 trillion won from nearly 140 trillion won.
Investors are increasingly favouring Taiwan, whose technology sector offers broader exposure to the AI supply chain....
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