Seoul: Foreign investors' net investment in South Korean stocks reached its highest level in more than 1 1/2 years last month amid expectations of improved conditions in the chip industry, central bank data showed Wednesday. Offshore investors purchased a net US$4.34 billion worth of local stocks in September, marking the largest amount since February 2024, when net investment stood at $5.59 billion.
According to Yonhap News Agency, this marked the second consecutive month of net inflows in foreign securities investment, following $180 million in August. Foreign investors also bought $4.78 billion worth of bonds in September, rebounding from a net selling of $770 million a month earlier.
"Foreign investment was focused on the electronics sector amid expectations of better conditions in the semiconductor industry," the Bank of Korea (BOK) stated. "The growth in bond investment was driven by rising demand for mid- to long-term bonds."
The Korea Exchange (KRX) reported that its semiconductor index rose 26.8 percent, from 3,780.05 on Sept. 1 to 4,792.07 on Sept. 30, while the benchmark Korea Composite Stock Price Index (KOSPI) gained 9 percent over the same period.
The central bank also noted that the Korean won weakened against the U.S. dollar in September, falling to 1,402.9 won from August's 1,390.1 won. Daily fluctuations in the won-dollar exchange rate decreased, averaging 3.9 won in September compared with 5.8 won a month earlier, the data showed.