As investor enthusiasm waned, South Korea's stock turnover fell to its lowest level this year, and it may be difficult for the market, which accounts for a high proportion of AI concepts, to return to its previous high. The average daily turnover of the Korea Composite Stock Price Index fell to 20.6 trillion won in September, the lowest in 2026, less than half of the market's peak turnover in May and June. Earlier this year, retail investors were driven by the AI boom, which drove Korean stocks to new highs; however, the market then had doubts about the realisation of earnings, and there was a sharp correction of 22% in July. Although the benchmark index has rebounded since then, it has not stabilized at the critical 7,000 point mark. Kim Min-sang, head of active stock investment at Kyobo Life Insurance, said, “Foreign capital will only return if market volatility falls further and the market's doubts about the chip cycle are resolved.” He expects the Korea Composite Index to remain range-bound in the short term. The Korea Composite Index has accumulated a cumulative increase of about 59% this year. It is still the best-performing major stock index in the world. Corporate repurchases support the market. However, there is heavy market resistance, and the Federal Reserve is expected to raise interest rates to further suppress growth stocks. Jiang Songzhe, an analyst at Eugene Securities, said, “Market momentum is declining. Domestic interest rates are rising, capital is shifting to savings products linked to interest rates, and the relative attractiveness of the stock market has declined.”

As investor enthusiasm waned, South Korea's stock turnover fell to its lowest level this year, and it may be difficult for the market, which accounts for a high proportion of AI concepts, to return to its previous high. The average daily turnover of the Korea Composite Stock Price Index fell to 20.6 trillion won in September, the lowest in 2026, less than half of the market's peak turnover in May and June. Earlier this year, retail investors were driven by the AI boom, which drove Korean stocks to new highs; however, the market then had doubts about the realisation of earnings, and there was a sharp correction of 22% in July. Although the benchmark index has rebounded since then, it has not stabilized at the critical 7,000 point mark. Kim Min-sang, head of active stock investment at Kyobo Life Insurance, said, “Foreign capital will only return if market volatility falls further and the market's doubts about the chip cycle are resolved.” He expects the Korea Composite Index to remain range-bound in the short term. The Korea Composite Index has accumulated a cumulative increase of about 59% this year. It is still the best-performing major stock index in the world. Corporate repurchases support the market. However, there is heavy market resistance, and the Federal Reserve is expected to raise interest rates to further suppress growth stocks. Jiang Songzhe, an analyst at Eugene Securities, said, “Market momentum is declining. Domestic interest rates are rising, capital is shifting to savings products linked to interest rates, and the relative attractiveness of the stock market has declined.”