According to Yonhap News Agency, South Korea’s stock market continued to weaken after the U.S. presidential election. Investors’ doubts about the domestic stock market have once again spread, and it has even been surpassed by the country’s virtual currency market.

While U.S. stocks rose due to the "Trump market", South Korea's Composite Stock Price Index (KOSPI) fell below 2,500 points, with a decline of 6.68% from the opening day of the U.S. election, and the Growth Enterprise Market Kosdaq Index (KOSDAQ) fell below 700 point, the share price of leading stock Samsung Electronics also fell below the 50,000 won mark.

Investors disappointed with the KOSPI index, which has been stuck in box territory for so long, appear to be accelerating their exit from the stock market. According to data from the Korea Exchange on the 13th, the average daily trading volume of the KOSPI and KOSDAQ indexes in January this year was about 20 trillion won, but it has shrunk to about 15 trillion won this month.

Ahead of the U.S. election, KOSPI’s daily trading volume dropped to 7 to 8 trillion won. Despite a post-election "Trump trade" boom looking for stocks to benefit from the Trump administration, daily turnover is still hovering around 10 trillion won. According to data from the Korea Financial Investment Association, investor deposits as reserve funds for the stock market decreased from 59.49 trillion won at the beginning of the year to 49.9 trillion won on the 8th.

Investors turn to U.S. stocks and currency markets

South Korean investors' attention is shifting from domestic stocks to U.S. stocks and cryptocurrencies, especially after Trump's election, and trading volumes have also increased significantly as the price of Bitcoin has soared.

According to statistics from Yonhap News Agency on the 13th, the total trading volume of South Korea’s five major cryptocurrency exchanges (Upbit, Bithumb, Coinone, Korbit and Gopax) in the past 24 hours reached 34.674 trillion won, which was the previous day’s KOSPI index trading volume. (12.84 trillion won) and 1.5 times the KOSDAQ index turnover (7.41 trillion won).

Funds flowing into the U.S. stock market have also increased significantly. According to statistics, the total U.S. stock assets held by South Korean investors exceeded US$100 billion for the first time on November 7, compared with US$44.2 billion at the end of 2022, in less than two years The amount has more than doubled. The number of U.S. stock transactions has also increased significantly, with the number of buy and sell settlements increasing from 8.698 million at the end of 2022 to 10.469 million as of November 12 this year.

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