Foreign investors dump South Korean equities in September amid bond yields and AI worries
Foreign investors sold a net US$14.16 billion of South Korean stocks in September, driven by higher bond yields and concerns over AI-related spending.
According to the Bank of Korea, foreign investors became net sellers of South Korean stocks in September, withdrawing US$14.16 billion after a net purchase of US$40 million in August. The outflow was accompanied by a US$5.81 billion sale of local bonds, adding to a US$4.53 billion bond sell-off in July. Market participants cited rising bond yields and heightened anxiety over potentially excessive investment in artificial-intelligence infrastructure as key drivers.
The pressure also reflected broader concerns about inflationary impacts from Middle-East tensions. As a result, the Korean won slipped to 1,352.8 per dollar at September’s close, compared with 1,368.6 a month earlier. This marks the latest in a series of monthly net sell-offs by foreign investors that began in January.
Why it matters
The outflow signals reduced foreign confidence in Korea’s market, which could affect the won and domestic financing conditions.
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