Foreign investors are exiting South Korea at a record pace. Net sales of approximately $13.2 billion in mid-May triggered a 4% drop in the KOSPI, and the selling has continued across 12 consecutive sessions. Total foreign outflows have now reached roughly 46.58 trillion won, or about $30.7 billion.
The exits are concentrated in the country’s most valuable assets: Samsung Electronics and SK Hynix. Foreign net sales in those two semiconductor giants alone exceeded $6.6 billion during a single week in May, driven by profit-taking after the recent AI rally.
On June 5, the KOSPI plunged more than 5% in what traders are calling "Black Friday," settling around 8,160 points. The won also fell to a 17-year low against the dollar. Cumulative foreign net selling on the KOSPI has now surpassed 103 trillion won for the year, topping levels seen during previous market crises.
Domestic retail investors, known as "ants," have stepped in as buyers, providing some support, but the selling pressure remains intense. Multiple factors-rising US Treasury yields, positioning for US listings, and geopolitical tensions-continue to weigh on the market.