A dealer works at the dealing room of Hana Bank’s headquarters in central Seoul on the morning of October 28, as the KOSPI opened at 4,010.47, down 32.36 points (0.80 percent) from the previous day. (Yonhap)
SEOUL, Oct. 28 (Korea Bizwire) — Foreign investors have been the primary force behind South Korea’s stock market rally, with those from the United States and Ireland contributing the most to the benchmark index’s historic rise past the 4,000-point threshold, according to newly released regulatory data.
From June through September, when the KOSPI’s rapid ascent accelerated, U.S. investors recorded net purchases totaling 8.23 trillion won (about $6 billion), the largest among overseas buyers, data from the Financial Supervisory Service showed Monday. Irish investors followed with 4.21 trillion won in net purchases, sharply higher than their monthly average earlier this year.
Investors from Luxembourg, Germany and China also added to the influx of foreign capital.
The shift marks a contrast with the behavior of British investors. Known for shorter-term trading strategies, U.K. investors sold a net 11.9 trillion won between January and August to lock in gains, before reversing course in September with 2.19 trillion won in net buying.
Foreign inflows have remained strong in October, with overseas investors purchasing 5.89 trillion won in KOSPI-listed shares through Oct. 27. Institutions also bought stocks, while retail investors sold a net 8.86 trillion won over the same period.
Separate data from the Korea Exchange indicates a growing European presence this month. Between Oct. 1 and 24, U.K. investors led global buyers with 3.1 trillion won in net purchases, followed by Norway and Ireland.
Analysts caution that differences in data-tracking methods between agencies make direct comparisons difficult, but the trend suggests European funds are increasingly stepping into the rally as U.S. momentum cools.
The KOSPI closed Monday at a record 4,042.83, surpassing 4,000 for the first time. The index stood at 2,697.67 at the end of May and has notched multiple new highs throughout October amid a surge in semiconductor stocks and renewed foreign confidence in the Korean market.
M. H. Lee (mhlee@koreabizwire.com)
