Seoul: Foreign investors sold the largest-ever amount of South Korean stocks in April amid market routs caused by U.S. tariff policies, data showed Friday. Offshore investors sold a net 13.59 trillion won (US$9.71 billion) worth of local stocks last month, marking a significant increase from a net sell-off of 1.64 trillion won in the previous month, according to the data from the Financial Supervisory Service (FSS). This marks the ninth consecutive month of foreign sell-offs of Korean stocks.
According to Yonhap News Agency, after the recent sell-off, foreign investors' ownership of Korean stocks stood at 707.1 trillion won, which is 26.5 percent of the total market capitalization. The data further revealed that British investors were the top net sellers, offloading 8.9 trillion won worth of shares, followed by U.S. investors who sold 1.5 trillion won. Despite the significant sell-off in stocks, foreign investors purchased a net 11.26 trillion won worth of local bonds during the same period.
Their holdings of local bonds amounted to 289.6 trillion won as of the end of April, accounting for 10.9 percent of listed bonds in the country, the data indicated. This shift in investment focus from stocks to bonds highlights the current volatility in the stock market, possibly driven by concerns over tariffs and their impact on global trade dynamics.