South Korea's KOSPI Falls 2% as Leveraged ETF Assets Halve to $260B, Despite Foreign Inflows

According to Goldman Sachs' latest South Korea market report, KOSPI fell about 2% last week despite continued foreign investor buying. Leveraged ETF assets in South Korea have halved to $260 billion from a peak of $530 billion, while retail margin balances declined to $220 billion from $250 billion. Foreign capital inflows have concentrated in the tech sector, yet the market faces medium-term outflow pressure with semiconductor holdings near historic lows. Goldman Sachs noted that while AI capital expenditure remains a key support factor for Korean equities, downward earnings revisions, low foreign positioning, and fluctuating risk appetite could amplify near-term volatility.
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