Asia Equity Strategy Korea the AI trade matures

ASIA EQUITY STRATEGY KOREA: THE AI TRADE MATURES

An update on market positioning, leverage, and fundamentals Frank Benzimra Rajat Agarwal Makhdoom Muteeb Raina Head of Asia Equity Strategy Asia Equity Strategist Asia Equity Strategist

With thanks to Ronaldo Gustaf who contributed to the report

Asia equity strategy reports on Korea: Who is buying Korean equities? Almost nobody (Jan.2026), Implications of surging retail inflows for Korean equities (May 2026), Korea: single stock leveraged ETFs are cornering up to 60% of the stock turnover (June 2026)

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PORTFOLIO FLOWS: RETAIL INVESTORS IN THE DRIVING SEAT Korea- Divergence in foreign vs retail inflows since March Portfolio flows by industry: Most of the activity is in the (USD bn) semiconductor sector (USD bn)

Foreigners Institutional Individuals 80 60 Foreigners 60 Most activity from Domestic Institutions Individuals and Foreigners 40 Individuals is in Semiconductors 40 Retail investors bought 20 more than USD 60bn 0 since April. On pause over the last two weeks - Chemicals Machinery Basic Metals Finance Transport Semiconductors -20 Equipment

Foreign flows and relative returns of the Kospi Foreign outflows -40 (in USD bn) have accelerated with outperformance of KOSPI Foreign investors sold 200 more than 70bn since -20 April. On pause over the -40 150 last two weeks - Foreign equity flows, USDbn -120 50 -100 Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul KOSPI relative to MSCI AC World, RHS May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

Source: SG Cross Asset Research/Equity Strategy, Bloomberg JULY 2026 2