South Korean stock market loses investor interest as AI investment cools

KuCoinFlash

Release Time: 2026/10/11 01:43:41

Summary

Market analysis shows South Korean stocks are losing momentum as AI investment cools. Investor sentiment has shifted, with trading volume down 70% from its peak in late May. Both foreign and domestic investors are withdrawing, particularly from Samsung Electronics and SK Hynix. Market analysis indicates that easily accessible profits from AI-driven memory chips have been realized, leading to underweighting. Investor sentiment is further pressured as capital flows back to U.S. markets. Analysts recommend exploring Taiwan’s tech hardware sector for stronger AI-related opportunities.

ME AI messages: For most of this year, South Korea was the quintessential representative of the global AI boom. Today, however, across nearly every metric, Korean equities are rapidly losing investor attention. Trading volumes have plunged 70% from their peak in late May, with foreign investors swiftly withdrawing and local retail investors also pulling back. This reversal stems from South Korea’s overreliance on Samsung Electronics and SK Hynix. Phillip Wool, Head of Portfolio Management at Rayliant Global Advisors, said: “For most investors—especially those who recently entered the Korean market through memory chip trades—the biggest challenge is that the easy money from this theme has already been captured.” He noted that his fund has been taking profits on Korean AI stocks and is currently underweight in SK Hynix and Samsung Electronics. Richard Tang of Julius Baer observed: “We’ve seen capital increasingly flowing back into U.S. equities, driving sustained outflows from Korean stocks.” Chun-Lai Wu of UBS Global Wealth Management added: “At present, we prefer to position for AI-related opportunities through Taiwanese equities; Taiwan boasts a more robust technology hardware ecosystem and benefits from strong spending plans by major tech companies.” (Source: BlockBeats)

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