South Korean Stock Market Slumps As AI Trade Loses Investor Momentum

South Korea's $4.3 trillion stock market has seen turnover collapse 70% from its late-May peak, with foreign investors withdrawing $131 billion this year.

The Kospi benchmark index dropped 22% in the second half of the year after leading global equities in the first half, driven by skepticism over memory chip demand.

The downturn has been exacerbated by slowing share repurchases and retail investors pulling back following a major leverage-driven selloff in the summer.