Foreign investors reverse seven-month sell-off, buy Korean equities in August

According to the Financial Supervisory Service, foreign investors reversed a seven-month sell-off by buying a net 340 billion won of South Korean stocks in August. This purchase brings their equity stake to roughly 34.8% of the nation’s market capitalization, totaling 2,281 trillion won. The United States led the buying spree with a net 13.4 trillion won, while Ireland contributed a net 3.2 trillion won.

Meanwhile, the same investors off-loaded a net 3.94 trillion won of Korean government bonds, reducing their bond holdings to 330 trillion won, or 11.4% of all listed bonds. The shift occurs amid ongoing geopolitical tensions and concerns over AI profitability. The data highlight a nuanced view of foreign capital flows, with equity buying offset by bond selling.