Key facts
- Foreign investors sold a record $31.83 billion in South Korean stocks in May.
- This selling spree follows a $2.68 billion divestment in April.
- Investors targeted chipmakers and other major companies.
- Total foreign selling in the first five months of the year reached $77.83 billion.
- In contrast, foreign investors purchased $5.68 billion in bonds during May.
Foreign investors continued a significant selling trend in South Korean stocks during May, offloading a record $31.83 billion worth of local equities. This outflow follows a $2.68 billion sell-off in April, according to data from the Bank of Korea. The substantial selling is attributed to investors cashing in gains from chipmakers and other market heavyweights after an extended rally. For the first five months of the year, foreign selling in the stock market totaled $77.83 billion. In contrast to stock sales, foreign investors were net buyers of bonds in May, purchasing $5.68 billion worth, an increase from $0.55 billion in April. Cumulatively, foreign investors sold a net $26.15 billion in local securities in May, up from $21.3 billion in net sales in April.