S. Korean won weakens against U.S. dollar on foreign selling in local stocks

Global investors, initially net sellers of South Korean stocks throughout 2023, have turned buyers in a dramatic reversal of sentiment. The shift is evident in a record $5 billion one-day purchase of $7.2 trillion won worth of shares, a stark contrast to the market's wild swings. This change in mood follows a roughly 40% decline in domestic retail traders, who have been left anguished by the drawdown from a June peak.

Analysts attribute the turn to a perceived intact growth momentum in heavyweight chipmakers, particularly Samsung Electronics and SK Hynix. Leveraged holdings, which contributed to the market's volatility, may have thinned out, suggesting a potential bottom in the near future.