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Foreign Investors Pour Into South Korean Stocks, Ownership Hits 6-Year High

Foreign ownership in South Korea's stock market climbed to 32.9% in December, marking the highest level in nearly six years. The surge was fueled by a net purchase of 3.5 trillion won in local shares, with heavy investment flowing into major chipmakers like SK hynix and Samsung Electronics. Robust global demand for memory chips and government reforms aimed at boosting corporate value are cited as key drivers. Concurrently, the benchmark KOSPI index soared, closing at a record high above 4,300 points.

Key Points: Foreign Ownership in S. Korean Stocks Hits 6-Year High

  • Foreign ownership hits 32.9%
  • Net buying in electronics sector
  • Bond market sees major inflows
  • Driven by chip demand and reforms
  • KOSPI index surges to record high
2 min read

Foreign ownership in S. Korean stock market at highest level in nearly 6 years

Foreign ownership in South Korea's stock market reached 32.9% in December, the highest since 2020, driven by chip sector optimism and market reforms.

"Foreign ownership as a share of total market capitalisation reached its highest level in five years and eight months in December. - Yonhap news agency"

Seoul, Jan 4

Foreign ownership as a share of total market capitalisation reached its highest level in five years and eight months in December amid a rally in the South Korean equity market, a report showed on Sunday.

Foreigners bought a net 3.5 trillion won (US$2.4 billion) worth of local shares in December, raising their stockholdings to 32.9 percent of total market capitalsation, the highest level since April 2020, according to a report published by the Korea Center for International Finance (KCIF), reports Yonhap news agency.

Separate data from the Financial Supervisory Service (FSS) showed that foreign ownership stood at 29.6 percent as of November, compared with 31.5 percent in April 2020. The FSS has yet to release its December figures.

The KCIF report said foreign investors purchased a net 4.5 trillion won worth of shares in the electronics sector in December, including 2.2 trillion won in SK hynix and 1.4 trillion won in Samsung Electronics.

As a result, foreign ownership of SK hynix rose to 53.8 percent in December from 53.2 percent a month earlier. Foreign holdings in Samsung Electronics also advanced to 52.3 percent from 52.2 percent over the same period.

In the bond market, foreign investors bought a net 8.8 trillion won worth of bonds last month, the report said.

The KCIF attributed the sharp rise in foreign investment to expectations that robust global demand for memory chips will benefit South Korean chipmakers.

The Seoul government's policies aimed at reforming the stock market and improving corporate value also helped attract foreign investors, the report added.

South Korea's benchmark stock index closed at 4,214.17 on Dec. 30, the last trading day of 2025, up 75.7 percent compared with the first trading day of the year.

Meanwhile, South Korean stocks surged more than 2 per cent on Friday to close at an all-time high, led by strong gains in large-cap semiconductor shares. The local currency weakened against the U.S. dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 95.46 points, or 2.27 percent, to close at 4,309.63, climbing past the 4,300 level for the first time ever.

- IANS

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Reader Comments

S
Sarah B
While it's great for their market, having over 50% foreign ownership in giants like Samsung and SK Hynix is a bit concerning from a strategic perspective. Hope the Korean government has safeguards. India must be careful about similar thresholds in our critical sectors.
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Priya S
Wow, 75.7% annual gain in their benchmark index? That's phenomenal! 🚀 Our Sensex and Nifty have done well, but this shows the power of being a leader in a high-demand sector like memory chips. Time for Indian investors to look at Korean ETFs?
R
Rohit P
The report mentions government policies to reform the stock market and improve corporate value. That's the key takeaway for me. SEBI and the finance ministry should study this model. We need to make our markets more attractive for long-term foreign capital, not just hot money.
K
Karthik V
Net buying in bonds too (8.8 trillion won)! This isn't just equity speculation; it's a vote of confidence in the entire Korean economy. With global uncertainties, investors are parking money in stable, growing markets. Hope India continues on its growth path to attract similar flows.
M
Meera T
A respectful criticism: The article jumps between two different reports (KCIF and FSS) with slightly different figures, which is a bit confusing for the average reader. Clarity in financial reporting is important. Otherwise, a good case study in economic success.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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