The Kospi's August slide has been accompanied by the weakest trading activity of the year, underscoring how quickly investor risk appetite has deteriorated as South Korea's semiconductor leaders retreated and macro pressures intensified. Daily average trading value stood at 26.28 trillion won, or about $18.7 billion, through Aug. 9, down from 36.88 trillion won in July and far below the more than 50 trillion won recorded in May and June. Daily average volume also dropped to 301.67 million shares, the lowest this year, while the index fell 5.10% and triggered circuit breakers (temporary market-wide trading halts) twice. The pullback has centered on Samsung Electronics and SK Hynix, whose shares fell 12.00% and 17.23% this month. Analysts linked the weakness to a reset in high expectations for semiconductors rather than a clear end to the AI investment cycle, citing concerns over next-generation High Bandwidth Memory, per-server memory capacity optimization, SanDisk's weaker-than-expected next-quarter guidance, and delays in shareholder return announcements. Reuters reported on Aug. 5 that both companies planned to unveil expanded shareholder return measures, but no detailed announcements have followed. SK Hynix later declared a quarterly dividend of 375 won per common share on Aug. 7 and said it was "actively reviewing additional shareholder return measures, with specifics to be finalized and announced during the third quarter." Broader macro conditions have added to the strain. Delays in ending the U.S.-Iran conflict have disrupted key Middle Eastern crude shipping routes, lifting oil prices and inflation expectations and pushing rates higher. The U.S. 10-year Treasury yield has rebounded to near 4.7%, reviving expectations of additional Federal Reserve tightening after the Fed left rates unchanged at last month's FOMC (Federal Open Market Committee) meeting. The Financial Times also reported that Fed Chair Kevin Warsh could prepare for a rate hike at the September FOMC meeting if inflation runs hot and tightening expectations strengthen. Analysts said a rebound would likely require foreign net buying, clearer shareholder return policies, and macro stabilization. Yuanta Securities' Kim Yong-gu said the Kospi's 12-month forward price-to-earnings ratio (valuation based on expected earnings) has fallen to 5.1x, a statistically oversold zone near the historical floor seen during the 2008 global financial crisis and the 2020 pandemic, when PER reached 4.7x and the Kospi was at the 5,150 level. Market participants are therefore expected to stay cautious until semiconductor direction and external risks become clearer, though analysts see scope for a sharp rebound if policy announcements and macro signals improve.