Seoul - After four months of selling, foreign investors have shifted back to purchasing South Korean stocks, particularly large-cap stocks, in November, with transactions totaling 2.9 trillion won (approximately US$2.3 billion), as reported by the main bourse on Sunday.
According to Yonhap News Agency, the buying spree was led by significant investments in two major tech companies. Foreign investors bought stocks worth over 2 trillion won in Samsung Electronics Co. and 679 billion won in SK hynix Inc. This marked a change in their investment pattern, following three consecutive months of selling South Korean stocks.
The renewed interest in South Korean stocks, especially in the semiconductor sector, is attributed to expectations of a turnaround in the chip industry next year. Analysts predict that this trend of foreign investment in local chip stocks is likely to continue into the current month.
However, foreign investors have reduced their holdings in South Korean rechargeable battery companies, such as Samsung SDI Co. and POSCO Future M. This shift reflects concerns over the decelerating pace of electric vehicle sales in global markets.