South Korea’s KOSPI dipped into bear territory as institutional outflows offset retail support amid tech sector concentration concerns.
Institutional investors are exiting South Korean equities en masse, driving the KOSPI into a brief bear market, according to iFlow data. Retail buyers remain active, but market participants question the sustainability of this support amid heavy selling pressure.
The sell-off is led by tech stocks, particularly Samsung Electronics and SK Hynix, despite Samsung’s projected quarterly profit rebound. Concerns over AI and semiconductor concentration, along with positioning and index weightings, are cited as key drivers rather than weak fundamentals.
Taiwanese equities have seen more measured liquidation, while Chinese markets continue to attract interest. South Korea’s single-stock ownership limits for active managers add a technical constraint to the sell-off.