Seoul: Foreign investors ended their seven-month sell-offs of Korean stocks in August amid extended geopolitical risks and woes over artificial intelligence (AI) profitability, data showed Friday.
According to Yonhap News Agency, offshore investors scooped up a net 340 billion won (US$246 million) worth of local stocks last month, snapping their selling binge for seven consecutive months, as revealed by data from the Financial Supervisory Service (FSS). This marked a significant shift in investment patterns as foreign investors turned to Korean stocks.
Following their net purchases in August, offshore investors owned 2,281 trillion won worth of local stocks, representing 34.8 percent of the total market capitalization. This substantial ownership highlights the renewed interest and confidence in the Korean stock market.
By country, investors from the United States emerged as the top buyers in August, purchasing a net 13.4 trillion won. They were followed by investors from Ireland, who bought 3.2 trillion won worth of stocks, according to the latest findings.
In contrast, the local bond market experienced a sell-off, with foreign investors selling a net 3.94 trillion won worth of local debt last month. Their holdings of Korean bonds stood at 330 trillion won as of the end of August, accounting for 11.4 percent of listed bonds, as revealed by the FSS.
The shift in investment trends highlights the complexities and dynamics of the international financial landscape, with foreign investors recalibrating their strategies amidst evolving global economic conditions.