South Korea’s KOSPI remained below the 7,000 mark, closing at 6,625 on Friday, as concerns over foreign fund outflows, slowing market liquidity and the sustainability of semiconductor profits continued to weigh on sentiment despite record earnings prospects.
The index has struggled to break out of its trading range for nearly three months, contrasting with US markets, where the Nasdaq and S&P 500 have continued to reach record highs amid enthusiasm for artificial intelligence-related stocks.
According to South Korean broadcaster SBS, average monthly trading value on the KOSPI fell from nearly 50 trillion won in May to 21 trillion won in September.
Individual investors have also become more cautious following a sharp market decline in July, while foreign investors have continued to withdraw funds from South Korean equities.
Concerns over the semiconductor outlook have added to the pressure. Although Samsung Electronics and SK Hynix have benefited from strong demand for memory chips used in AI infrastructure, investors remain uncertain about how long elevated profit margins can be sustained.
The expansion of production capacity from 2028 could ease supply shortages, while monthly price growth for conventional PC DRAM and NAND memory has recently slowed to single-digit rates.
Investors are now looking to Samsung Electronics and SK Hynix’s earnings announcements later this month for further guidance on memory demand and pricing.
Hyundai Motor Securities researcher Kim Jae-seung said investors would be more comfortable buying memory stocks if sales volume continued to grow without a decline in prices.
The planned November listing of US artificial intelligence company Anthropic is also drawing attention, with investors watching whether it will sustain enthusiasm for AI investments or divert capital away from South Korean equities.
