Foreign investors extend South Korea asset selling to fifth month in June

Bank of Korea data showed combined net sales of stocks and bonds rose to $30.72 billion from $26.15 billion in May as AI investment concerns and portfolio rebalancing weighed on sentiment.

Summary

Foreign investors remained net sellers of South Korean assets in June for a fifth consecutive month, with combined net sales of stocks and bonds rising to $30.72 billion from $26.15 billion in May, Bank of Korea data showed. The central bank said worries about overheated AI infrastructure investment and portfolio rebalancing during a rising stock market hurt sentiment and sped up capital outflows.

Terms & Concepts
  • net sellers: Investors who sold more assets than they bought.
  • portfolio rebalancing: Adjusting holdings to restore target asset allocations.
  • capital outflows: Money leaving a country's financial markets.