This photo taken Jan. 2, 2026, shows the dealing room at Woori Bank in central Seoul. (Yonhap)
SEOUL, Jan. 4 (Korea Bizwire) — Foreign investors’ presence in South Korea’s stock market climbed to its highest level in nearly six years in December, buoyed by a sharp rally in equities and growing optimism about the country’s semiconductor industry.
Foreign ownership reached 32.9 percent of total market capitalization, the highest since April 2020, after overseas investors bought a net 3.5 trillion won ($2.4 billion) worth of South Korean shares during the month, according to a report released Sunday by the Korea Center for International Finance.
The buying spree was heavily concentrated in technology. Foreign investors purchased a net 4.5 trillion won in electronics stocks in December alone, including 2.2 trillion won in SK hynix and 1.4 trillion won in Samsung Electronics, the report said. As a result, foreign ownership of SK hynix rose to 53.8 percent from 53.2 percent a month earlier, while holdings in Samsung Electronics edged up to 52.3 percent.
Separate figures from the Financial Supervisory Service showed foreign ownership at 29.6 percent as of November, compared with 31.5 percent in April 2020. December data from the regulator have yet to be released.
Foreign investors were also active in the bond market, buying a net 8.8 trillion won in debt securities last month, according to the KCIF.
Analysts attributed the renewed foreign interest to expectations of strong global demand for memory chips, which has lifted prospects for South Korea’s leading semiconductor manufacturers. Policy efforts by the Seoul government to reform capital markets and improve corporate value have also helped make local equities more attractive, the report said.
The surge in foreign inflows coincided with a banner year for South Korean stocks. The benchmark index closed at 4,214.17 on Dec. 30, the final trading day of 2025, up 75.7 percent from the first session of the year — a performance that underscored the market’s growing appeal to global investors.
Ashley Song (ashley@koreabizwire.com)
