According to Wall Street Insights, the Kospi has fallen 22% in the second half of this year, making it the worst-performing major global stock index, a reversal from its position as the strongest performer in the first half. Foreign investors have net withdrawn $131 billion from South Korean equities this year, the largest outflow among major Asian markets.

Analysts point out that the decline in the South Korean stock market is mainly dragged down by AI concept stocks, with Samsung Electronics and SK Hynix together accounting for over 50% of the Kospi's weighting. Despite Samsung Electronics' quarterly operating profit surging nearly ninefold year-on-year, its stock price has fallen instead of rising. Furthermore, the two chip giants' combined stock repurchase plan of approximately $41 billion is nearing completion, creating a vacuum in market buying support. Meanwhile, the Taiwan stock market has become an alternative for AI funds, with the Taiex index rising 70% year-to-date.