Kospi Daily Trading Volume Hits Lowest Level Since January Amid Rate Hikes and AI Concerns

Kospi's daily average trading volume for September has hit a year-to-date low of 21.432 trillion won, according to Korea Exchange data from September 1-15. This marks the lowest monthly level since January, down over 50% from June's peak of 50.347 trillion won.

The decline follows a sharp drop in investor confidence due to rising interest rates and oil prices, with semiconductor stocks—led by Samsung Electronics and SK Hynix—losing momentum. Investor sentiment has cooled as concerns about slowing AI investment growth overlap with macroeconomic pressures.

Investor margin deposits, a key indicator of market readiness for entry, fell to 93.5499 trillion won as of September 4—the lowest since January 16—and have dropped by over 40 trillion won from June's peak of nearly 140 trillion won.

Analysts attribute the shrinking market liquidity to a loss of confidence in Samsung and SK Hynix, whose share price momentum has stalled. Both stocks saw their market caps fall from over 2,000 trillion won to around 1,000 trillion won, reducing investor interest.

One investor commented, 'I've deleted my stock app after losing money on Samsung and SK Hynix,' while another said, 'It's better for mental health not to trade stocks.' The market now faces a prolonged liquidity crunch as retail investors hold onto losses rather than sell.