Over KRW 60 Trillion Wiped Out... Is There Any Lower to Go? [Weekend Money]

Stock market trading value falls for fifth consecutive month
Turnover ratio also near a record low
"The market is nearing a bottom"

An electronic board displays the state of South Korea's stock market at Hana Bank's dealing room in Jung-gu, Seoul, on Oct. 29, 2026. Photo by Kim Hyunmin.

As the domestic stock market has weakened, trading value has declined for five consecutive months. Some in the securities industry say that the trading value turnover ratio has recently risen, suggesting the market is nearing a bottom.

According to Kiwoom Securities, the average daily trading value on the domestic stock market in October was KRW 38.7 trillion, down 3% from KRW 40.1 trillion the previous month. This was a sharp 64% drop from the record high of KRW 106.2 trillion in May. As the market correction continued, average daily trading value fell for five consecutive months starting in May.

Trading value is calculated by multiplying market capitalization by the turnover ratio. Kiwoom Securities said there are limits to directly comparing current stock market trading value with past figures, since a larger market capitalization can create the illusion of higher trading value. It said that using the turnover ratio is therefore a more reasonable way to assess the current level of trading value.

Based on the trading value turnover ratio, recent trading value on the domestic stock market has fallen to its level before the bull market. Over the past 10 years, the domestic stock market's trading value turnover ratio has ranged from 100% to 400%, with an average of around 200%. The ratio recently stood at 162% in September and 190% in October. This was the first time the market had recorded a turnover ratio below 180% since January 2025, before the bull market began in earnest.

"Based on the trading value turnover ratio, trading value has now fallen to the level of a typical market rather than a bull market, so there seems to be little room for a further decline," said An Youngjun, a researcher at Kiwoom Securities.

An estimated that securities stocks were nearing a bottom, taking into account the turnover ratio and valuations. "The securities sector has continued to correct alongside the broader market," he said. "However, valuations, shareholder return yields, and the stock market's trading value turnover ratio suggest that share prices, based on fundamentals, have come sufficiently close to bottom territory."

He added, "Investor sentiment toward the broader stock market has a significant impact on the securities sector, so if the market and the trading value turnover ratio begin to rise again, we can expect a rebound."

This content was produced with the assistance of AI translation services.