Due to Foreign Investors' Massive Dumping of Korean Stocks
The average daily volume of foreign exchange dealings hit an all-time high in the first quarter of this year, when the financial market fell into chaos due to the spread of COVID-19.
The Bank of Korea announced on April 23 that the daily average of foreign exchange dealings by foreign exchange banks reached US$59.37 billion in the first quarter, up 9.2 percent from the previous quarter and the largest since records began in 2008.
This has to do with foreigners who dumped South Korean stocks. Foreign investors’ net selling in the KOSPI market added up to 15.5 trillion won in the first quarter.
Another factor is local securities companies that sold equity-linked securities. The global stock market plunged after late February, and then the securities companies increased their dollar procurement in a hurry in order to pay additional margins in overseas derivatives markets.