Foreigners Sold $35.7 Billion of South Korean Stocks in June, Extending Net-Selling Streak to Six Months

June Foreign Securities Investment Trends

Foreign investors were net sellers of nearly $36 billion of South Korean stocks last month. Even so, the value of their equity holdings rose by more than $40 billion from a month earlier to above $2.1 trillion.

According to the Financial Supervisory Service’s June foreign securities investment data released on July 31, foreigners were net sellers of 49.336 trillion won ($35.7 billion) in listed shares in June. That was the largest monthly net sale on record and marked a sixth straight month of net selling. They sold 50.979 trillion won ($36.9 billion) on the Kospi and bought 1.643 trillion won ($1.19 billion) on the Kosdaq.

Their stock holdings stood at 2,908.6 trillion won ($2.11 trillion) at the end of June, up 56.3 trillion won ($40.8 billion), or 1.97%, from the previous month. The increase reflected gains in the value of shares they already held. June preceded the stock market’s move into a full-fledged correction phase.

By region, European and US investors were net sellers of 30.8 trillion won ($22.3 billion) and 27 trillion won ($19.6 billion), respectively, while Asian investors were net buyers of 2.6 trillion won ($1.88 billion). US investors held the largest share at 1,222.3 trillion won ($886 billion), or 42% of the total. Europe followed with 899 trillion won ($652 billion), or 30.9%, Asia with 411.2 trillion won ($298 billion), or 14.1%, and the Middle East with 60.6 trillion won ($43.9 billion), or 2.1%.

Foreign investors were net buyers of bonds. They made net purchases of 4.478 trillion won ($3.25 billion) in listed bonds last month. Their bond holdings stood at 334.794 trillion won ($243 billion) at the end of June, up 1.208 trillion won ($876 million), or 0.36%, from a month earlier.

Ko Jeong-sam, Hankyung.com reporter, jsk@hankyung.com