Foreign capital continues to flow out of the South Korean stock market, causing volatility due to high leverage and financing funds Recently, the South Korean stock market has officially entered a technical bear market stage. Many people believe that the downturn in the South Korean market is caused by the cooling of semiconductors. However, those who have read my tweets recently should know that the biggest problem in South Korea is not that semiconductors are unpopular anymore, but that there are too many funding issues in the South Korean stock market. We have previously introduced in multiple articles that the South Korean stock market is currently in a situation where financing and high leverage coexist. While amplifying funds, it also amplifies the risk of stock market volatility. Today, we saw another set of data that a large amount of overseas funds are gradually leaving the South Korean stock market, not just from the past two months, but from January onwards. So in recent times, the support for the continuous rise of the South Korean stock market has been almost entirely from overseas funds. More likely, it is the funds leveraged by South Korean investors themselves through financing and leverage. This also represents that during the hottest period of the South Korean market, foreign investors did not chase after buying all the way, but instead continuously reduced their holdings in South Korean stocks. And more of the users staying in the venue are local Korean users. As these users may not necessarily be high-level buyers, but still remain in the market to some extent as foreign buyers when foreign capital exits, this also makes the rise of the South Korean stock market less healthy. When funds enter with leverage at the beginning, it can indeed replace some of the overseas funds' exit and even drive the market to a higher level. However, this process is most prone to investors misjudging it as a purely fundamental market trend, as stock price increases, industry narratives, and capital inflows will occur simultaneously. A characteristic of leveraged funds is that they are strong when the market is favorable and urgent when the market is unfavorable. Prices continue to rise, financing accounts are safe, leveraged ETFs are also attractive, and the money making effect will continue to attract funds in. But as soon as the price starts to fluctuate, the problem arises. Financing accounts will look at margin, while leveraged ETFs will face daily reset and volatility losses. The market does not need to drop sharply immediately, as long as it fluctuates back and forth for a period of time, many positions will start to feel uncomfortable. So the Korean market cannot just focus on the financial reports of Samsung or SK Hynix now. A good financial report is certainly useful, but it can only prove that the industry logic is still there and cannot solve the problem of capital structure. The expectations of semiconductor recovery, AI demand, and storage price increase have already been traded for one round, and the stock price has risen a lot. At this time, foreign investors are still selling continuously, and there are also a large number of financing and leveraged ETFs on the market. It is difficult for the financial report to support the entire market alone. What the Korean stock market really needs to see now is whether the pace of foreign capital selling has stopped, whether the financing balance has decreased, and whether the size of leveraged ETFs has decreased. Purely relying on financial reports is no longer enough to save the South Korean stock market. The main way to save the South Korean stock market is through its capital structure, either relying on South Korean investors themselves to continue tightening their belts to raise funds, increase leverage, and push up the "false prosperity", or reducing positions and leverage until the market naturally recovers, or waiting for the return of overseas funds. Especially the return of overseas funds may be more important for the South Korean stock market than financial reports. @Gate Crypto、 US stocks, Hong Kong stocks, South Korean stocks, gold CFD、 Predicting one-stop trading in the market