Did Net Foreign Selling in South Korea Reach a Record High in November?
Click to start listening
Synopsis
In November, South Korea's stock market witnessed an unprecedented surge in net foreign selling, reaching a staggering 14.4 trillion won. This shift occurred as individual investors countered by making significant purchases, leading to a fascinating dynamic in the market. What does this mean for the future of investments in the region?
Key Takeaways
- Net foreign selling in November reached 14.4 trillion won.
- Individual investors were net buyers, acquiring 9.2 trillion won.
- Foreign investor sentiment was affected by U.S. rate expectations and AI uncertainties.
- SK hynix and Samsung Electronics saw the most foreign net selling.
- The KOSPI peaked at 4,221.87 points in November.
Seoul, Nov 30 (NationPress) Net foreign selling in South Korea's primary stock market hit a new monthly peak in November, while individual investors continued to be net buyers, according to the bourse operator's announcement on Sunday.
Foreign investors unloaded a net 14.4 trillion won (approximately US$9.8 billion) in shares on the benchmark Korea Composite Stock Price Index (KOSPI) throughout November, as reported by the Korea Exchange and the Yonhap news agency.
This figure signifies the highest monthly net selling recorded by offshore investors, exceeding the prior record of 12.5 trillion won established in March 2020 during the initial phase of the COVID-19 pandemic.
Despite net purchases of 7.4 trillion won and 5.3 trillion won in local shares in September and October, respectively, foreign investors shifted to net selling in November.
From January to November, the total net selling by foreigners amounted to 8.8 trillion won.
Analysts noted that the decrease in foreigners' interest in risky assets was influenced by diminishing expectations for a U.S. rate cut at the Federal Reserve's upcoming December meeting and rising uncertainties related to artificial intelligence (AI) technologies.
In November alone, foreign investors sold a net of 8.7 trillion won in shares of SK hynix and 2.2 trillion won in Samsung Electronics, with these two companies accounting for 76% of foreign net selling for the month.
Following them was Doosan Enerbility with 787 billion won in foreign net selling, Naver with 606 billion won, and KB Financial Group with 558 billion won.
On the other hand, individual investors acquired a net of 9.2 trillion won in November, marking the third-largest monthly net buying recorded, following 22.3 trillion won in January 2021 and 11.1 trillion won in March 2020.
Their primary target was SK hynix, where they purchased a net of 5.9 trillion won this month, alongside a net acquisition of 1.2 trillion won in shares of Samsung Electronics.
Among their most favored stocks were Doosan Enerbility, Naver, and Samsung Epis Holdings.
The KOSPI experienced significant volatility in November, achieving an all-time high of 4,221.87 points on the first trading day of the month before concluding at 3,926.59 on November 28.
Point of View
It’s crucial to observe the ongoing shifts in South Korea's stock market. The significant net foreign selling indicates a cautious sentiment among international investors, driven by external economic factors. Meanwhile, the resilience of individual investors highlights a contrasting confidence within the domestic market. This dual narrative is essential for understanding the broader financial climate in South Korea.
NationPress
30/11/2025
Frequently Asked Questions
What caused the spike in net foreign selling in November?
The spike in net foreign selling was influenced by fading expectations for a U.S. rate cut at the Federal Reserve's December meeting and rising uncertainties surrounding AI technologies.
How much did individual investors purchase in November?
Individual investors purchased a net of 9.2 trillion won in November, marking the third-largest monthly net buying on record.
Which stocks were most affected by foreign selling?
The most affected stocks included SK hynix and Samsung Electronics, which together accounted for a significant majority of foreign net selling.
What was the KOSPI's performance in November?
The KOSPI experienced volatility, reaching an all-time high of 4,221.87 points before closing at 3,926.59 on November 28.
How does this impact future investments in South Korea?
The contrasting behaviors of foreign and domestic investors suggest a complex investment landscape, indicating potential opportunities and risks for the future.
