SEOUL– Foreign investors turned net sellers of South Korean equities in May, as financial authorities partly resumed stock short-selling, the central bank said Friday.

Foreigners sold a net US$8.23 billion worth of local stocks last month, compared with net buying of $590 million in April, according to the Bank of Korea (BOK).

Offshore investors, however, remained net buyers of Korean bonds worth $4.59 billion last month, the BOK said.

Meanwhile, volatility in South Korea’s currency slightly rose in May from the previous month, the central bank said.

The daily fluctuation of the dollar-won exchange rate came to an average of 4.2 won last month, down from 3.2 won a month earlier.

Situations for the country’s foreign currency borrowing remained sound as the spread charged on local banks’ short-term, as well as mid- and long-term, overseas borrowing declined, the BOK said.

The spread on credit default swaps for South Korea’s five-year dollar-denominated currency stabilization bonds came in at 19 basis points in May, down from 21 basis points a month earlier.

Source: Yonhap News Agency