Korean Stocks Struggle as AI Trade Fades

South Korea's stock market, once a key player in the global AI boom, is now struggling to attract investors. The $4.3 trillion market has seen a sharp decline in trading activity, with turnover dropping 70% from its peak in late May. Foreign investors, who had previously driven much of the demand, are now pulling back at the fastest pace in Asia. Local retail investors are also reducing their participation, further weakening market sentiment. The Kospi index, which was the world's best-performing major benchmark in the first half of the year, has since lost 22% of its value, making it the worst-performing in the second half. Meanwhile, AI-focused markets in Taiwan and the US continue to set new highs, highlighting the shifting dynamics in the global tech sector.