Foreigners remain net sellers of Korean stocks in October

Foreign investors maintained their role as net sellers of South Korean stocks for the second month in a row in October, driven by apprehensions surrounding artificial intelligence-related investments, according to central bank data released on Thursday. During the month, offshore investors offloaded a substantial $19.31 billion worth of local stocks, marking a significant increase from the $14.16 billion they sold in September, as reported by the Bank of Korea (BOK).

The trend of foreign investors transitioning from net sellers to net buyers started in August, after they had been consistently selling local stocks since January of the current year. The BOK explained that the selling continued due to ongoing concerns about an excessive focus on AI infrastructure investments. In the first ten months of the year, foreigners had sold a net $164.34 billion worth of Korean stocks.

In October, foreign investors purchased $5.61 billion worth of local bonds, marking a shift from a three-month selling phase. At the end of October, the South Korean won was trading at 1,334.3 won per dollar, a slight improvement from 1,352.8 won per dollar a month earlier.