Foreign investors dump over 20 trillion won of Korean stocks, led by SK hynix and Samsung
Foreign investors sold a net 20.305 trillion won of shares on the Kospi in the past month, with SK hynix and Samsung Electronics accounting for most of the outflow.
Market data show that foreign investors net-sold 20.305 trillion won of Kospi shares between Sept. 1 and Oct. 2, a period that included after-hours trading introduced on Sept. 15. They were net buyers on only seven of the 22 trading days, with a single day, Sept. 28, seeing net sales exceeding 3 trillion won. The sell-off was dominated by the semiconductor sector, as foreign investors dumped 12.009 trillion won of SK hynix stock and 5.186 trillion won of Samsung Electronics stock.
Consequently, foreign ownership of SK hynix fell to 49.76%, its lowest since May 2023, while Samsung Electronics’ foreign stake slipped to 46.41%. Analysts attribute the trend to profit-taking after earlier gains and to heightened uncertainty from the US-Iran conflict and rising global interest rates. However, modest buying on Oct. 1 and smaller sales on Oct. 2 suggest the intensity of selling may be easing. Attention now shifts to upcoming third-quarter earnings, which could influence whether foreign capital returns to Korean equities.
Why it matters
The large foreign outflow reduces overseas confidence in Korean equities and could pressure the market and the chip sector.
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