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BackForeigners remain net sellers of Korean stocks in Oct.
Foreigners remain net sellers of Korean stocks in Oct.
NEWS
Yonhap News1 hour agoBusiness1 min readSouth Korea

Foreigners remain net sellers of Korean stocks in Oct.

Offshore investors sold a net $19.31 billion in local stocks in October amid AI infrastructure concerns

Quick Look

  • Foreign investors were net sellers of South Korean stocks for a second consecutive month in October, offloading a net $19.31 billion amid concerns over AI infrastructure investment, according to Bank of Korea data.
  • They also bought $5.61 billion in local bonds, ending a three-month sell-off, while the won strengthened to 1,334.3 per dollar.

AI-generated summary

Why It Matters

Foreign investors had been net sellers of South Korean stocks since January 2024 but turned to net buyers in August before resuming net selling in September and October. For the first 10 months of the year, foreigners sold a net $164.34 billion worth of Korean stocks.

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SEOUL, Nov. 12 (Yonhap) -- Foreign investors remained net sellers in the South Korean stock market for the second consecutive month in October on concerns over artificial intelligence-related investment, central bank data showed Thursday.

Offshore investors offloaded a net US$19.31 billion worth of local stocks last month, expanding from a net selling of $14.16 billion in September, according to the data from the Bank of Korea (BOK).

Foreign investors had been net sellers of local stocks since January this year but turned to net buyers in August.

The BOK said foreign investors sold local stocks amid lingering concerns over excessive investment in AI infrastructure.

For the first 10 months of the year, foreigners sold a net $164.34 billion worth of Korean stocks.

They purchased $5.61 billion worth of local bonds last month, ending a three-month sell-off.

The won was trading at 1,334.3 won per dollar at the end of October, compared with 1,352.8 won a month earlier.

Open Questions

  • What specific AI infrastructure investments are driving foreign investor concerns?
  • Whether the November bond buying trend will continue
  • What level of won strength the Bank of Korea considers acceptable

Related Topics

This article was originally published by Yonhap News.

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