Seoul, Feb 16 Despite the recent upbeat stock market, foreign ownership of South Korean shares has fallen to the lowest level in nearly one and a half years, data showed on Sunday.
Foreign investors' holdings of Korean stocks on the benchmark Korea Composite Stock Price Index (KOSPI) accounted for 31.96 percent, or 676.43 trillion won ($468.53 billion), of the total market capitalization as of Thursday, according to the data compiled by Yonhap Infomax, the financial data firm of Yonhap News Agency.
It marked the lowest level since September 20, 2023, when offshore investors owned 31.97 percent of KOSPI-listed stocks.
Foreign investors net sold local stocks for the sixth consecutive month in January. This month alone, they have sold a net 1.75 trillion won worth of stocks on the main bourse, even though the KOSPI has risen 8 per cent so far this year.
Foreign sell-offs came amid concerns about the impact of U.S. President Donald Trump's sweeping tariffs on the South Korean industry and the broader economy.
Investors also remained wary of the domestic political situation following now-suspended President Yoon Suk Yeol's shocking martial law declaration on Dec. 3, 2024, as well as weak growth momentum, according to experts.
"The tariff issue could further affect the domestic stock market, as chances seem limited for South Korea to have negotiations with the U.S. and adjust the policy through top-level talks given domestic circumstances," said Lee Young-won, an expert from Heungkuk Securities.
Foreigners have sold 1.82 trillion won worth of top-cap Samsung Electronics so far this year, followed by shares of No. 1 carmaker Hyundai Motor, worth 701 billion won, and leading financial firm KB Financial Group shares, worth 316 billion won, the data showed.
On Friday, the KOSPI rose 0.31 per cent to close at 2,591.05, marking the highest level since October 30, 2024.
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