🚨‼️The South Korean stock market is facing a critical test as foreign investors continue to exit at a record pace. Since October 2024, overseas investors have sold more than $60 billion worth of equities, creating significant pressure on the market. However, strong buying activity from domestic investors has helped absorb much of this selling, preventing a deeper decline.
📊 Key Market Highlights
🔴 Foreign Investor Selling
Foreign investors have withdrawn over $60 billion since October 2024.
▫️The latest week alone recorded approximately $10 billion in net outflows.
▫️Persistent selling reflects concerns about global economic uncertainty and market risks.
🟢 Strong Domestic Support
▫️Domestic retail and institutional investors have invested more than $50 billion during the same period.
▫️Local buying has absorbed most of the foreign selling pressure.
▫️Strong domestic liquidity is helping stabilize market sentiment.
📈 Capital Flow Trends
Cumulative foreign outflows reached nearly -$60 billion.
▫️Domestic inflows climbed above +$50 billion.
▫️The net capital outflow remains around -$10 billion, far smaller than foreign selling alone would suggest.
📉 KOSPI Performance
The KOSPI Index has experienced a noticeable correction from its previous highs.
▫️Recent price action shows signs of stabilization and a potential short-term recovery.
▫️Investors are closely watching whether this becomes a healthy correction or the beginning of a deeper downturn.