Seoul: Foreign investors purchased the highest value of South Korean stocks in 15 months in June, central bank data showed Wednesday, driven by eased concerns over U.S. trade policies and optimism about the new Seoul government's market-supportive measures.
According to Yonhap News Agency, offshore investors bought a net US$2.27 billion worth of local stocks last month, marking a second consecutive month of net buying, as reported by the Bank of Korea (BOK). This figure represents the highest level since March 2024, when foreigners purchased a net $3.84 billion worth of local stocks.
Foreign investors also net purchased $2.81 billion of Korean bonds in June, extending their buying streak to the fifth month. A BOK official noted, "Expectations for policies by the new government to boost the stock market appeared to have improved investor sentiment. In terms of the bond market, mid- to long-term bond investments continued, though net inflow declined due to the maturity and redemption of government bonds."
The benchmark Korea Composite Stock Price Index (KOSPI) posted its largest monthly gain in 55 months in June by rising 13.86 percent, as per data provided by Yonhap Infomax, the financial data firm of Yonhap News Agency. Additionally, the BOK data indicated that the Korean won strengthened against the U.S. dollar in June, rising to 1,350 won from 1,380.1 won in May.
The daily fluctuation of the dollar-won exchange rate increased to an average of 8.8 won from 7.2 won during the cited period amid the Middle East crisis and other external uncertainties, according to the central bank. The Korean won had previously weakened significantly from late last year through around April to near the 1,500 won level, primarily due to the political turmoil sparked by former President Yoon Suk Yeol's martial law declaration on Dec. 3 and the continued strengthening of the U.S. dollar.