▲ Bank of Korea Headquarters
Foreign investors maintained a net selling stance in South Korea's stock and bond markets for the eighth consecutive month last month.
According to the "International Financial and Foreign Exchange Market Trends" statistics released by the Bank of Korea today (October 16), foreign securities (stocks and bonds) investment funds recorded a net outflow of $19.97 billion in September.
A net outflow means that the amount of foreign investment funds withdrawn from the South Korean securities market exceeded the funds brought in.
Foreign funds have been recording net outflows since February.
In March, it recorded a record-high net outflow of $36.55 billion.
The size of the net outflow in September expanded significantly compared to $4.5 billion in August.
By type of security, stock funds shifted from a net inflow of $40 million in August to a net outflow of $14.16 billion in September.
Stock funds had turned to a net inflow for the first time in eight months, only to return to a net outflow just a month later.
An official from the Bank of Korea explained, "Investment sentiment contracted due to rising global long-term interest rates and concerns over a slowdown in AI investments, leading to a shift to net outflows."
Bond funds saw a net outflow of $5.81 billion.
The scale of the bond fund net outflow is the largest since March, when it recorded a record high of $6.77 billion.
Bonds have continued to post net outflows for three months since July of this year.
The Bank of Korea explained that the net outflow expanded due to the maturity of treasury bonds and sluggish reinvestment resulting from the reversal of short-term arbitrage incentives.
(Photo provided by the Bank of Korea, Yonhap News)
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