Business · Markets · 1 day ago
KOSPI lags as AI stock gains, strong won and foreign selling weigh
South Korea’s KOSPI has struggled to rise since August, even as US and Taiwan stock markets reach record highs and Japan’s market rebounds.
The gap reflects a global rally led by a small group of companies tied to AI spending, rather than gains across the whole market.
South Korea’s market depends heavily on memory chips, while investor enthusiasm has shifted toward areas such as custom chips and advanced packaging.
A stronger won also makes South Korean exports less competitive and has lowered expectations for export companies’ earnings.
Foreign investors have added to the pressure, selling about 28.7 trillion won of KOSPI shares over the past month.
The source says currency, high borrowing costs and other pressures on exports are expected to remain a burden for now.
That leaves the KOSPI struggling to keep pace with markets benefiting from the AI rally.
The KOSPI has gained just 0.46% since August, lagging rallies in the United States, Taiwan and Japan.
The index is under pressure from a stronger won, foreign investor selling and concentration in a small number of AI-related stocks.
The won has strengthened 15.70% against the dollar since July, lowering expectations for export companies’ earnings.
Foreign investors sold 28.6872 trillion won of KOSPI shares over the past month.
The article says South Korea’s reliance on memory chips has left its market exposed as AI investment leadership shifts toward other sectors.
- Who
- South Korea’s KOSPI and foreign investors trading its shares.
- What
- The KOSPI has lagged other major markets amid a stronger won, foreign selling and concentration in AI-related stocks.
- When
- The report was published on October 10, 2026, and describes the KOSPI’s performance since August.
- Where
- South Korea’s stock market.
- Why
- The article cites South Korea’s reliance on memory chips, rapid won appreciation and foreign investor outflows.
This story does not have two clearly opposing sides.
AI-related leadership by a small number of stocks is supporting the index, but market breadth has contracted to its lowest level since the dot-com bubble
The stark temperature difference between the US and domestic markets is the result of South Korea being left out as leadership in the AI cycle shifts from memory to custom semiconductors, materials and equipment, and security software
The won strengthened 15.70% against the dollar, while the Taiwan dollar weakened 0.19% and the yen strengthened 2.74%.
The KOSPI gained 0.46%, according to the article.
Foreign investors sold 28.6872 trillion won of KOSPI shares.
The KOSPI fell by more than 2%, according to the article.
- KOSPI gain since August
- 0.46%
- Won appreciation since July
- 15.70% against the US dollar
- Foreign net sales over the past month
- 28.6872 trillion won
- Foreign net sales in five trading days this month
- 6.4459 trillion won
- KOSPI level versus June 22 peak
- About 27% lower
Sources
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