South Korea’s stock market ended the trading week of Nov 17-21 lower, with the Kospi facing pressure from overvalued technology stocks and a pullback in foreign investment.
The market’s recent momentum, driven by semiconductor and artificial intelligence (AI)-related names, gave way to cautious trading as investors rotated out of riskier sectors.
The week opened on Nov 17 with the Kospi higher, supported by gains in heavyweight semiconductor stocks such as Samsung Electronics and SK Hynix. Bargain hunters helped lift sentiment, providing an early boost to the benchmark index.
However, the positive trend proved short-lived as foreign investors, who had fuelled recent gains, began reducing exposure, contributing to selling pressure in technology and chip stocks. Concerns over stretched valuations in AI-related companies further weighed on sentiment throughout the week.
Currency movements also played a role, as the weakening won coincided with net foreign selling, curbing potential inflows and reinforcing market caution.
Despite these headwinds, some analysts remain optimistic, maintaining a bullish outlook, projecting a potential 30% rise in the Kospi next year, citing structural growth in AI and the prospect of falling interest rates.
Overall, South Korea’s equities experienced a choppy week as profit-taking and valuation concerns dominated. Market participants are expected to remain selective, focusing on resilient sectors until foreign flows and global risk sentiment stabilise.
