Goldman Sachs said rising concentration in Samsung Electronics and SK Hynix, combined with 10% fund limits, contributed to record foreign selling in South Korean equities, with monthly outflows reaching the highest level since 1999.
Strong buying of Samsung Electronics and SK Hynix by global investors pushed some funds above 10% single-stock concentration limits, forcing them to trim positions. Goldman Sachs said this concentration dynamic could create additional selling pressure. Foreign investors had net sold $63.6 billion in South Korean stocks by Thursday, marking the largest monthly outflow since 1999. The existing view that passive rebalancing pressure may ease remains relevant, but the new data adds that foreign outflows have now reached a record monthly scale.