Foreign ownership in S. Korean stocks hit a high

SEOUL: Foreign ownership as a share of total market capitalisation reached its highest level in five years and eight months in December amid a rally in the South Korean equity market, a report shows.

Foreigners bought a net 3.5 trillion won of US$2.4bil worth of local shares in December, raising their stockholdings to 32.9% of total market capitalisation, the highest level since April 2020, according to a report published by the Korea Centre for International Finance (KCIF).

Separate data from the Financial Supervisory Service (FSS) showed that foreign ownership stood at 29.6% as of November, compared with 31.5% in April 2020.

The FSS has yet to release its December figures.

The KCIF report said foreign investors purchased a net 4.5 trillion won worth of shares in the electronics sector in December, including 2.2 trillion won in SK Hynix and 1.4 trillion won in Samsung Electronics.

As a result, foreign ownership of SK Hynix rose to 53.8% in December from 53.2% a month earlier.

Foreign holdings in Samsung Electronics also advanced to 52.3% from 52.2% over the same period.

In the bond market, foreign investors bought a net 8.8 trillion won worth of bonds last month, the report said.

The KCIF attributed the sharp rise in foreign investment to expectations that robust global demand for memory chips will benefit South Korean chipmakers.

The Seoul government’s policies aimed at reforming the stock market and improving corporate value also helped attract foreign investors, the report added.

South Korea’s benchmark stock index closed at 4,214.17 on Dec 30, the last trading day of 2025, up 75.7% compared with the first trading day of the year. — The Korea Herald/ANN