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South Korea AI Concept-stock frenzy cools: trading value plunges from May peak 70%, while foreign capital accelerates its exit

PANews October 11 reported, citing BusinessTimes, that South Korea was a leading example of the global AI frenzy for most of this year, but Korean equities are now rapidly losing investor attention by nearly every metric. Market trading value has plunged from its May-bottom peak 70%, foreign investors are exiting rapidly, and local South Korean retail investors are also withdrawing. Behind this reversal is the Korean stock market's excessive reliance on Samsung Electronics and SK Hynix. Richard Tang of Bank Julius Baer Switzerland said: “We are seeing capital increasingly flow back into U.S. equities, which has led to continued foreign outflows from Korean stocks.” In addition, Phillip Wool, Head of Portfolio Management at Rayliant Global Advisors, said: “I think that for most investors, especially those who only recently entered the Korean market through memory-chip trades...”