Foreign investors offloaded more than 10 trillion won ($6.6 billion) worth of shares in Samsung Electronics and SK hynix last week, extending their net-selling streak in the South Korean stock market to 12 consecutive trading sessions, according to data from the Korea Exchange and Yonhap Infomax released on Monday, 26 May 2025. The sustained selloff marks one of the most concentrated exits from Korean semiconductor stocks in recent memory.

Scale of the Selloff

During the week beginning 18 May, foreigners offloaded a net 5.33 trillion won worth of SK hynix shares and 5.26 trillion won worth of Samsung Electronics shares. Together, the two chip giants accounted for 73% of total foreign net selling of Korean equities, which stood at 14.45 trillion won for the week.

Zooming out to the full 12-session period since 7 May — when foreign investors first turned net sellers — the numbers are even starker. Foreigners shed a net 19.53 trillion won in SK hynix and 18.87 trillion won in Samsung Electronics, together representing 82.9% of their total net selling of 46.34 trillion won across all Korean stocks during that stretch.

Other Stocks in the Crosshairs

The selling pressure was not confined to chipmakers. Hyundai Mobis Co., Hyundai Motor Co., LG Electronics Inc., and Samsung Electro-Mechanics Co. also featured among the most heavily sold stocks by foreign investors last week, suggesting a broader de-risking of Korean equity exposure rather than a chip-specific correction alone.

Where the Money Is Going

In a notable rotation, offshore investors increased purchases in robotics and energy storage system (ESS) stocks. On the benchmark Korea Composite Stock Price Index (KOSPI), foreigners bought a net 370 billion won worth of Doosan Robotics Inc. shares and 148.9 billion won worth of Samsung SDI Co. shares.

On the secondary Korea Securities Dealers Automated Quotations (KOSDAQ) market, foreigners purchased a net 1.29 trillion won worth of shares last week. This included 155.6 billion won in Fadu Inc., a fabless company specialising in storage systems for AI data centres, and 128 billion won in Seojin System Co., an ESS and telecom equipment maker. The shift reflects strong growth expectations for global robotics and ESS markets, driven by demand tied to physical AI and AI data centre build-outs.

Analyst View: Portfolio Rebalancing, Not Panic

Analysts say the selloff appears to reflect portfolio rebalancing following sharp run-ups in semiconductor valuations rather than a fundamental loss of confidence. Kang Jin-hyuk, an analyst at Shinhan Securities, said: 'Foreign investors may have responded with selling as the share of Korean semiconductor stocks in their portfolios increased sharply due to steep price gains. They appear to have shifted funds to other stocks where earnings are improving but share prices remain relatively low.'

This is the longest foreign net-selling streak on the Korean bourse in recent months, and markets will be watching closely whether the rotation into robotics and ESS marks a durable thematic shift or a short-term reallocation.