Seoul
Foreign ownership of South Korean stocks has dropped to its lowest level this year, following the reelection of former U.S. President Donald Trump, according to data released on Sunday.
As of Friday, foreign investors held 32.3% of the market capitalization on the KOSPI index, or 637.48 trillion won ($456 billion), down from 32.7% at the beginning of the year. The percentage had previously fluctuated, reaching a high of 36% in July before declining in August and September.
The drop in foreign ownership comes amid a surge in selling activity from offshore investors, particularly after Trump’s presidential victory. His policies are expected to negatively impact key South Korean industries such as chipmakers, automakers, and electric vehicle (EV) battery manufacturers. Additionally, foreign investors have been pulling back due to the weakening of the Korean won against the U.S. dollar, which has reached a two-year low.
In November alone, foreign investors sold a net 1.87 trillion won worth of stocks on the KOSPI, with the market seeing a significant 5.4% dip this month. The sell-off has been particularly noticeable in major South Korean companies.
Notably, foreign investors offloaded 2.74 trillion won worth of Samsung Electronics shares, reducing their stake in the tech giant to 51.72%, the lowest level in nearly 19 months. The company’s stock price recently hit a four-year low due to concerns that Trump might cut chip incentives. In response, Samsung announced a 10-trillion won share buyback plan to stabilize its stock price.
