South Korean equity market turnover has collapsed 70% from its late-May peak as the nation's AI-driven rally loses momentum. Foreign investors are rapidly exiting while domestic retail traders also retreat, signaling a sharp reversal for a market that served as a global proxy for the artificial intelligence boom throughout most of this year.
The downturn stems from heavy reliance on Samsung Electronics and SK Hynix, with fund managers noting that easy gains from the memory chip trade have largely been captured. Rayliant Global Advisors has taken profits on Korean AI stocks and is currently underweight both semiconductor giants. Meanwhile, Julius Baer reports capital is increasingly rotating back to U.S. equities, driving sustained foreign outflows from South Korea.
South Korean Stock Market Trading Volume Plunges 70% From May Peak as AI Rally Fades
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