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Foreigners continued to offload Korean stocks, bonds for 5th month in January: BOK

Published: 14 Feb. 2025, 16:21 Updated: 14 Feb. 2025, 16:23

A screen in Hana Bank's trading room in central Seoul shows the Kospi closing at 2,521.27 points on Feb. 10, down 0.65 points, or 0.33 percent, from the previous trading session. [NEWS1]

Foreign investors remained net sellers of Korean stocks and bonds for the fifth month in a row in January amid concerns about weak economic growth momentum and uncertainties stemming from U.S. President Donald Trump's new tariff policies, the central bank said Friday.

Offshore investors sold a net $1.78 billion worth of local stocks and bonds last month, following a net selling of $3.86 billion in December, according to the data from the Bank of Korea (BOK).

Foreigners have been net sellers of Korean stocks and bonds since September 2024.

In detail, foreigners' Korean stock selling amounted to $510 million in January, the sixth consecutive monthly outflow, though the reading fell from a record $3.86 billion net selling in December.

Foreigners also offloaded $1.27 billion worth of Korean bonds in the month following their net selling of $1.28 billion the previous month, the data showed.

"Fund outflows have continued due to concerns about growth momentum for domestic semiconductor companies and uncertainties regarding new policies of the new U.S. government. But the amount markedly narrowed last month on bargain hunting," the BOK said in a release.

The data also showed that the Korean currency fell to 1,453.4 won against the dollar in January from 1,452.7 won a month earlier.

But the daily fluctuation of the dollar-won exchange rate rose to an average of 5.9 won from 5.7 won over the cited period, the data showed.

The local currency weakened markedly in recent months due mainly to the political turmoil sparked by President Yoon Suk Yeol's martial law declaration on Dec. 3 and the continued strengthening of the dollar.

Yonhap