South Korea has been a benchmark for hot global artificial intelligence trading for a long time this year. Now, no matter what indicator you look at, this $4.3 trillion stock market is rapidly losing investors' attention. Market turnover plummeted 70% from its peak at the end of May. Foreign capital is being withdrawn at the fastest speed in Asia, and local retail investors are also leaving. The Korea Composite Stock Price Index was the best-performing major stock index in the world in the first half of the year. Since then, it has dropped 22%, making it the worst performing major stock index in the second half of the year; while the US stock index, which is also heavily invested in the AI sector, continued to reach new highs. Behind the market reversal, the AI dividend in the Korean stock market is highly dependent on the two major memory chip giants Samsung Electronics and SK Hynix, both of which are at the core of the global AI supply chain. This highly concentrated nature has now become a shortcoming: investors are beginning to question whether the memory chip boom cycle can continue, compounded by the sharp sell-off caused by high leverage this summer, and many global funds are wary of returning to the Korean market. Together, these two chip companies account for more than half of the weight of Korea's composite stock price index, and were the main forces driving the index's rise earlier this year. According to exchange data, foreign investment withdrew 131 billion US dollars from the Korean stock market this year, making it the largest of the major Asian markets.

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