Foreign investors offloaded a record net 4.7 trillion won ($3.3 billion) of South Korean equities in May, marking the highest monthly sell-off on record, according to data released Friday.
The unprecedented outflow was driven by a combination of profit-taking after a sustained rally in major semiconductor stocks and heightened risk aversion stemming from unrest in the Middle East.
The data underscores the fragility of foreign capital support in Seoul’s market, which has seen its benchmark KOSPI index plunge nearly 10% recently, triggering circuit breakers.
The data underscores the fragility of foreign capital support in Seoul’s market, which has seen its benchmark KOSPI index plunge nearly 10% recently, triggering circuit breakers.
This surge in selling contrasts sharply with domestic investor behavior.
The number of stock trading accounts in South Korea has reached an all-time high, fueled by retail participation in the semiconductor bull run.
However, the divergence between domestic buying and foreign selling has intensified market turbulence, with offshore investors liquidating positions as geopolitical risks mount.