Seoul:Foreign investors sold a significant amount of South Korean stocks in September, driven by rising bond yields and concerns over artificial intelligence-related investments, according to central bank data released on Friday.
According to Yonhap News Agency, offshore investors divested a net $14.16 billion worth of local stocks last month. This follows a brief period in August where foreign investors were net buyers, purchasing $40 million in stocks. However, the trend of net selling, which began in January, resumed in September.
The Bank of Korea noted that the sell-off was influenced by fears that ongoing tensions in the Middle East could increase inflationary pressure, alongside renewed concerns about excessive investment in AI infrastructure. Additionally, foreign investors offloaded $5.81 billion in local bonds in September, following the sale of $4.53 billion in bonds the month before.
The exchange rate for the won stood at 1,352.8 won per dollar at the end of September, slightly improving from 1,368.6 won at the end of August.