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Foreign sales of Korean stocks and bonds hit five-year high

Published: 15 Jan. 2025, 18:28

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,496.81 points on Jan. 15, down 0.02 percent, or 0.59 points, from the previous trading session. [YONHAP]

Foreign investors sold the largest value of Korean stocks and bonds in about five years in December amid political turmoil sparked by the now-suspended President Yoon Suk Yeol's martial law declaration, central bank data showed Wednesday.

Offshore investors sold a net $3.86 billion worth of local stocks and bonds last month, marking the largest amount since March 2020, when the country was hit by the Covid-19 pandemic, according to data from the Bank of Korea (BOK).

In detail, foreigners' Korean stock selling amounted to $2.58 billion in December, its fifth consecutive monthly outflow.

Foreigners also off-loaded $1.28 billion worth of Korean bonds following their net purchase of $810 million in November, the data showed.

“Concerns linger over the prospect for domestic semiconductor companies. Uncertainty over domestic politics and interest rate cuts in major economies also affected investor sentiment,” a BOK official said.

The data also showed that the Korean currency fell sharply to 1,472.5 won against the dollar in December from November's 1,394.7 won.

The daily fluctuation of the dollar-won exchange rate rose to an average of 5.3 won last month from 4.7 won a month earlier.

Yonhap