From BigGo Finance · BigGo Finance · · 1m 40s
KOSPI Plunges 34% as Foreign Investors Pull Out
South Korea's stock market crashes 34% after foreign investors sell ₩208 trillion.
In brief
South Korea's stock market crashes 34% after foreign investors sell ₩208 trillion. South Korea's KOSPI dropped 34.5% in the second half of the month as foreign investors sold ₩208 trillion (≈$156.2 billion) of shares, sparking warnings of a dot-com bubble repeat. Originally reported by BigGo Finance.
KOSPI Plunges 34.5%
South Korea's KOSPI has plunged 34.5% in the second half, sharply diverging from major markets such as the Nasdaq and Taiwan.
Foreign Investors Sell ₩208 Trillion
Foreign investors net sold about 208 trillion won (approximately $156.2 billion) of KOSPI shares this year.
Korea Discount Persists
The Korea Discount, the undervaluation of the South Korean market, has yet to be resolved despite revisions to the Commercial Act and stronger shareholder-return policies.
AI Credit Risk Surges
CoreWeave's five-year CDS spread topped 1,140 basis points intraday, signaling a 64% probability of default within five years.
Price-to-Earnings Ratio Drops
The KOSPI's price-to-earnings ratio fell more than 30% in two months before the selloff, resembling the 2000 dot-com collapse.
2000 Dot-Com Bubble Comparison
In 2000, the KOSPI PER plunged 39.0% in two months, from 29.65x to 18.10x, before the dot-com bubble burst.
Market Divergence
The KOSPI fell for seven straight sessions from the 6th to the 15th of this month, a cumulative decline of 20.7%.
Semiconductor Cycle Weakens
Claims that the AI cycle has peaked are raising concerns about weakening momentum across global semiconductor stocks.
Korea Discount Resolves
Analysts predict the market will regain normal footing as efforts to narrow the Korea Discount continue.
The short version
South Korea's KOSPI dropped 34.5% in the second half of the month as foreign investors sold ₩208 trillion (≈$156.2 billion) of shares, sparking warnings of a dot-com bubble repeat.
