The decline in the stock market has cooled the enthusiasm of retail investors. Notably, the KOSPI has experienced a significant drop compared to major global markets. Since June, it has fallen over 30%. In contrast, stock markets in the United States and Taiwan have risen, while Japan and China have seen relatively limited adjustments.
According to the Korea Exchange, the KOSPI closed at 5,552.74 on October 20, marking a 34.49% decline from its closing price of 8,476.15 on May 29. Over the past five months, it has dropped by 2,923.14 points. Compared to its highest closing price of 9,114.55 recorded on June 22, the decline reaches 39.08%.
The underperformance of the domestic stock market is even more pronounced when compared to other countries. Since June, the S&P 500 index in the U.S. has risen by 1.46%, while the Nasdaq Composite has decreased by 2.01%. The Nikkei 225 index in Japan has only fallen by 2.70%.
The gap with major Asian markets is also significant. The Taiwan Weighted Index has increased by 3.52%, rising from 44,732.94 on May 29 to 46,309.63 recently. Meanwhile, the Shanghai Composite Index in China has dropped by 8.81% during the same period. The KOSPI has recorded the worst performance among major global markets since June.
The relative weakness of the domestic stock market is attributed to a high dependence on the semiconductor sector and the outflow of foreign capital. Given the significant weight of major semiconductor stocks like Samsung Electronics and SK Hynix in the KOSPI, concerns over a slowdown in AI investment have negatively impacted these stocks, thereby affecting the overall index.
A securities industry official stated, "The influence of major semiconductor stocks on the index is substantial, leading to greater volatility during the global tech stock adjustment phase. Stability in foreign capital inflows and reduced uncertainty regarding the semiconductor industry are necessary to narrow the performance gap with major global markets."
* This article has been translated by AI.
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