South Korea AI stocks lose steam as Kospi drops 22% from peak
Why it matters: Foreign funds pulled $131 billion from South Korean stocks, while chip buybacks that supported demand are nearing an end.
South Korea’s once-hot AI stock trade is losing momentum as investors pull back from memory-chip plays centered on Samsung Electronics and SK Hynix. The Kospi, a top performer earlier in the year, has fallen 22% from its late-May peak, while turnover has dropped 70% and foreign investors have retreated at the fastest pace in Asia, the report said. Skepticism about how long the memory-chip boom can last has weighed on the market, even after Samsung posted a nearly nine-fold jump in quarterly operating profit. The market is also bracing for the end of combined 55 trillion won in stock buybacks by Samsung and SK Hynix, which JPMorgan Chase said accounted for most of September’s buy orders.