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🇰🇷 South Korea /Economy & Trade

Foreign investors sell record $29 billion in South Korean stocks

From Dong-A Ilbo · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

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  • Foreign investors have sold a net of 40.519 trillion won in the KOSPI market this month, surpassing the previous monthly record of 35.881 trillion won in March.
  • This sell-off is attributed to portfolio adjustments and profit-taking following the KOSPI's 86% surge this year, exacerbated by rising U.S. Treasury yields.
  • While external factors like U.S. Treasury yields and inflation concerns triggered the selling, deeper reasons for the trend are also cited.

Foreign investors have sold a record 40.519 trillion won of South Korean stocks this month, shattering the previous monthly record set in March. This significant sell-off comes as the KOSPI index has surged 86% this year, prompting global portfolio adjustments and profit-taking.

Since early May, foreign investors have been net sellers of KOSPI stocks for 12 consecutive trading days. While rising U.S. Treasury yields and inflation fears, driven by prolonged high oil prices, have acted as catalysts, analysts suggest more fundamental reasons are at play for the sustained selling pressure.

The U.S. 10-year Treasury yield has surpassed 4.6%, with the 30-year yield reaching over 5.1%, levels not seen since 2007. This has made emerging market assets less attractive, contributing to the outflow of foreign capital from South Korea.

About this summary

Originally published by Dong-A Ilbo in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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