South Korean stocks quickly erased losses Wednesday as local retail investors bought into foreign fund selling. The rose 0.3% after dropping as much as 3.2% intraday. briefly fell up to 6.1% after failing to reach a wage agreement with its largest labor union, while reversed early losses amid concerns over overheating in AI-related stocks following a US tech selloff. Foreign investors have sold more than $45 billion of Kospi stocks so far this year, but local institutional and retail buying has

South Korean stocks quickly erased losses Wednesday as local retail investors bought into foreign fund selling. The rose 0.3% after dropping as much as 3.2% intraday. briefly fell up to 6.1% after failing to reach a wage agreement with its largest labor union, while reversed early losses amid concerns over overheating in AI-related stocks following a US tech selloff. Foreign investors have sold more than $45 billion of Kospi stocks so far this year, but local institutional and retail buying has supported the index, which is still up 82% year-to-date. Morgan Stanley raised its 12-month Kospi target to 8,500 from 6,500, citing structural reform support, while noting external risks from geopolitical tensions.