Foreign investors have dumped billions of dollars of Korean stocks this year despite record rally. Here's why
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- Foreign investors sold net 1.24 trillion won ($801 million) of Kospi‑listed shares on Monday, adding to about $62 billion of cumulative outflows since late May.
- Kospi opened more than 8 % lower after the foreign outflow.
- Goldman Sachs said the selling was driven by outflows from Kospi Tech and Auto sectors.
- Nomura strategist Chetan Seth described the outflows as forced selling caused by portfolio‑limit pressures as Korean stocks rose in global benchmarks.
- Man Group managing director Nick Wilcox noted that Korea’s rapid rise in emerging‑market indices and ownership caps are creating structural selling pressure for international investors.
Why it matters: Foreign investors incur losses as they unwind $62 billion of positions, while Korean retail investors gain buying opportunities and the market benefits from fresh $70 billion inflows, supporting bullish forecasts.
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