PANews October 11 news, according to Cailianshe, for most of this year, South Korea was a typical representative of the global AI boom. Now, by almost every metric, South Korean stocks are rapidly losing investor attention. Market turnover has plunged 70% from its peak at the end of May, foreign investors are rapidly withdrawing, and South Korean local retail investors are also exiting. Behind this reversal is the South Korean stock market's excessive reliance on Samsung Electronics and SK Hynix.
Phillip Wool, head of portfolio management at Rayliant Global Advisors, said: "I think for most investors, especially those who entered the South Korean market recently because of memory chip trades, the biggest challenge is that the easy money in this theme has already been made." He said his fund has been taking profits on South Korean AI stocks and is currently underweight SK Hynix and Samsung Electronics. Richard Tang of Julius Baer said: "We are observing that funds are increasingly flowing back to US stocks, which has led to continued foreign capital outflows from South Korean stocks."