Korean stock market trading volume plunges 70% from late-May peak as foreign capital exits and local retail investors retreat

Odaily News: For most of this year, South Korea has been a poster child for the global AI boom. Now, by almost every measure, Korean stocks are rapidly losing investor attention. Market trading volume has plunged 70% from its late-May peak, foreign investors are pulling out quickly, and South Korea's local retail investors are also retreating. Behind this reversal is the Korean stock market's excessive reliance on Samsung Electronics and SK Hynix.

Phillip Wool, head of portfolio management at Rayliant Global Advisors, said: "I think for most investors, especially those who only recently entered the Korean market because of the memory chip trade, the biggest challenge is that the easy money in this theme has already been made." He said his fund has been taking profits on Korean AI stocks and is currently underweight SK Hynix and Samsung Electronics. Richard Tang of Bank Julius Baer said: "We are observing that capital is increasingly flowing back to US stocks, which has led to continued foreign outflows from Korean stocks. (BusinessTimes)