Bloomberg: South Korean stock market becomes the first trillion dollar market to fall below 5 times P/E ratio On October 23rd, according to Bloomberg data, the expected price to earnings ratio of the South Korean KOSPI index for the next 12 months has dropped to 4.2 times, becoming the first trillion dollar market on record to fall below the 5-fold mark. Among the 18 markets with a market value exceeding $1 trillion at the beginning of this year, there has never been a benchmark stock index experiencing this situation before. The cooling of the AI boom has triggered a sell-off in technology stocks, putting pressure on the South Korean stock market. Despite South Korean exports moving towards $1 trillion and strong demand for chips from SK Hynix and Samsung Electronics, investors are still unwilling to pay higher valuations for the profits of these companies. The valuation level of the South Korean stock market has approached that of the Indonesian market, which is facing the risk of MSCI downgrade, and the discount level has further expanded. Bloomberg commentary believes that the extreme undervaluation of the South Korean stock market may create space for future valuation repairs, and if market sentiment shifts, the South Korean stock market is expected to outperform other markets in stages. However, there is currently uncertainty about when valuation repair will begin and whether the stock market will continue to decline. A low P/E ratio does not necessarily mean that the market has bottomed out.