STOCKS | Kospi Trading Volume Falls to 2026 Low as Momentum Fades

South Korean stock trading volume fell to its lowest level this year as investor enthusiasm cooled, and the AI-heavy market may struggle to revisit its earlier highs. According to Sina Finance, the Kospi's average daily trading value in September fell to 20.6 trillion won, or $15 billion, the lowest in 2026 and less than half the peak seen in May and June. Earlier this year, retail investors bought heavily on the AI rally, helping South Korean stocks hit record highs, but doubts over profit-taking led to a 22% pullback in July. The benchmark has since rebounded, but it has still failed to hold above the key 7,000-point level. Kim Min-sang, head of active equity investments at Kyobo Life Insurance, said foreign investors would only return if market volatility fell further and concerns over the chip cycle eased. He expects the Kospi to remain range-bound in the near term. The Kospi is still up about 59% this year, making it the world's best-performing major stock index, with share buybacks supporting the rally. However, market headwinds remain, and expected Federal Reserve rate hikes may further pressure growth stocks. Eugene Securities analyst Kang Song-cheol said market momentum is fading, while rising domestic interest rates are pushing funds into savings products linked to interest rates and reducing the stock market's relative appeal.