Foreigner investors dumped Korean shares in 2015

Foreign investors became net sellers in the South Korean equity markets in 2015 by dumping a total of 3.5 trillion won ($2.9 billion) worth of stocks, according to figures from the local financial watchdog.

In 2014, offshore traders bought a net 6.3 trillion won in shares, the Financial Supervisory Service said Thursday. That was an increase from the 4.7 trillion won they purchased in 2013 and the 1.7 trillion won in 2012. 

As of the end of the year in 2015, the traders snapped the three-year buying spree. The total value of foreigners’ shareholdings stood at 421 trillion won to account for just under 30 percent of South Korea‘s total market capitalization, the FSS data showed.

“The ‘Sell Korea’ sentiment is attributable to sliding oil prices amid the protracted economic downturn and global uncertainties, such as the U.S. rate hike, which prompted investors to shun risky assets,” said Kim Jung-hwan, a Daewoo Securities researcher.

British investors dumped the largest amount of Korean shares, worth 5.2 trillion won, followed by the 4.7 trillion won off-loaded by traders from Saudi Arabia and 1.4 trillion won from Norway.

U.S. investors, meanwhile, were the top buyers in South Korea, purchasing 9.9 trillion won worth of shares, followed by Singapore with 1.6 trillion won and Japan with 1.3 trillion won.

In the local bond market, foreigners were net buyers, purchasing a net 500 billion won. As of the end of last year, the total value of their bonds came to 101.4 trillion won.

(khnews@heraldcorp.com)