As of January 2, 2024, the KOSPI Index ETF recorded a loss of approximately 70,000 won, while the S&P 500 Index ETF recorded a gain of approximately 400,000 won, marking the largest gap between Korean and US stock markets in 23 years. This reflects concerns over slowing South Korean economic growth and political uncertainty including the emergency martial law crisis. With won weakness, domestic retail investors suffered significant losses while foreign retail investors posted strong gains, widening the disparity further. Experts anticipate that additional declines will be limited since the KOSPI has already reflected the martial law incident, but they forecast that improvement in investment sentiment will be difficult in the short term due to lingering political uncertainty.
