Once-hot AI trade leaves Korean stocks struggling for buyers

South Korea's stock market, specifically the Kospi, has seen a significant downturn after a period of strong growth in the global AI sector. This decline has led to a sharp drop in trading activity, with turnover falling by a staggering 70%. As a result, both foreign and local investors are withdrawing their funds from the market.

Why it matters

The downturn in the AI sector has led to a significant decline in the Kospi index, making it difficult for Korean stocks to attract buyers. This decline may continue if the AI sector does not recover.

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