Net Selling Amounts to KRW5.3tn in April
The Financial Supervisory Service announced on May 12 that foreign investors’ shareholding in the South Korean stock market was 696.222 trillion won last month, 26.7 percent of the aggregate value of the market and the lowest since May 2009.
The ratio hit an all-time high of 33.9 percent in October 2017. It dipped below 30 percent in June last year and has continued to fall since then.
This is because domestic investors have increased their investment in contrast to foreign investors. Last month, the latter recorded a net selling of 5.294 trillion won in the South Korean stock market. Their net selling from January to April is 14.4 trillion won.
This is because the won-dollar exchange rate is soaring, that is, the value of the South Korean currency is decreasing rapidly, not to mention the Fed’s tapering move.