Foreign ownership of KOSPI stocks hits highest in 5 years and 9 months

Korea Economic Daily

Summary

It reported that foreign investors’ shareholding ratio in the KOSPI market hit a 5-year-and-9-month high of 37.18%.
It said the ownership ratio climbed from the 31–32% range in the first half of last year, rising after September and topping 37% on Jan. 7 this year.
It reported that foreign buying concentrated on the semiconductor sector in the second half of last year and, this year, on the Jobangwon sectors, including Korea Electric Power and LG Chem.

Buying shares such as KEPCO and LG Chem

Foreign investors’ shareholding ratio in the main KOSPI market has risen to the highest level in 5 years and 9 months, data showed. The increase reflects foreigners’ heavy buying, following large-cap semiconductor names in the second half of last year, of so-called “Jobangwon” sectors—shipbuilding, defense and nuclear power.

According to the Korea Exchange on the 25th, as of the 7th, foreign investors held 37.18% of the total market capitalization of KOSPI-listed shares (KRW 3,759.7225 trillion), with the value of their holdings standing at KRW 1,398.0348 trillion. That marks the highest level since April 9, 2020 (37.34%).

The foreign ownership ratio hovered in the 31–32% range in the first half of last year before turning higher from September. It surpassed 35% at end-October and 36% at end-December, and topped 37% on Jan. 7. Foreign holdings have continued to rise since then, but the overall market cap increased by more, nudging the foreign ownership ratio slightly lower to 36.85% as of the 23rd.

Foreign buying was concentrated in the semiconductor sector in the second half of last year, and in the Jobangwon sectors this year. Based on trading value in the second half of last year, Samsung Electronics ranked first in net foreign buying (KRW 14.1209 trillion), followed by Samsung Electronics preferred shares (KRW 2.2532 trillion). Next came Korea Electric Power (KRW 977.1 billion), LG Chem (KRW 931.3 billion), Isu Petasys (KRW 811.6 billion) and Samsung Electro-Mechanics (KRW 721.1 billion).

By Jeon Ye-jin ace@hankyung.com