PANews October 11 news, according to BusinessTimes, South Korea has been a poster child for the global AI boom for most of this year, but now by almost every measure Korean stocks are rapidly losing investor attention. Market turnover has plunged 70% from its peak in late May, foreign investors are rapidly withdrawing, and South Korean local retail investors are also exiting. Behind this reversal is the Korean stock market's excessive reliance on Samsung Electronics and SK Hynix.
Richard Tang of Julius Baer said: "We are observing that funds are increasingly flowing back to US stocks, 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 for most investors, especially those who entered the Korean market recently because of the memory chip trade, the biggest challenge is that the easy money in this theme has already been made." He said his fund has been taking profits on Korean AI stocks and is currently underweight SK Hynix and Samsung Electronics.