Foreign investors dump record Korean stocks amid retail panic selling

In June, foreign investors sold a net total of 49.336 trillion won of South Korean listed equities, marking six consecutive months of net outflows. They also bought 4.478 trillion won of bonds, resulting in a total net withdrawal of 44.858 trillion won. Despite the sell‑off, foreign holdings of Korean equities rose to 2,908 trillion won (36.4 % of market cap) and bond holdings to 334.794 trillion won. The United States and United Kingdom were the biggest sources of stock sales, while purchases were recorded in the Cayman Islands and France. Regionally, U.S. investors held the largest share of foreign‑owned Korean stocks at 1,222.3 trillion won (42 %).

On the domestic side, individual investors sold 1.422 trillion won on 30 May, contributing to the KOSPI’s decline to 5,593.56 points, down 1.23 % that day and about 33 % for the month. Even after Samsung Electronics reported record second‑quarter earnings, concerns over a semiconductor “peak‑out” and falling SK Hynix shares failed to halt the sell‑off. Leverage products tied to these stocks fell sharply, and market commentators highlighted heightened volatility and structural fragilities in Korea’s equity market.