South Korea’s main stock market is falling sharply as investor enthusiasm for the global AI trade fades. Multiple outlets report that the Kospi has dropped roughly 22% from its peak and is struggling for liquidity, with turnover down about 70% since May.
The selloff is accompanied by reduced participation from both foreign and domestic investors, with foreign outflows described as the highest in Asia. Bloomberg frames the broader context as a shift away from a year in which South Korea benefited as a major AI-linked market. NDTV and others add concerns tied to memory chip demand, suggesting investors are reassessing earnings expectations for chipmakers that have been central to AI supply chains. Collectively, the reporting points to cooling AI-related demand expectations and a decline in trading activity as the key drivers behind the weakening market sentiment.
