Key facts
- Foreign investors sold $14.16 billion of Korean stocks in September.
- August saw net buying of $40 million by foreign investors.
- Concerns over Middle East tensions and AI investment drove the sell-off.
Foreign investors became net sellers of South Korean stocks in September, offloading a net $14.16 billion worth of local equities. This marks a reversal from August, when offshore investors were net buyers to the tune of $40 million. The Bank of Korea attributed the September sell-off to concerns over rising inflationary pressures stemming from Middle East tensions and worries about excessive investment in artificial intelligence infrastructure. In addition to stocks, foreign investors also sold $5.81 billion worth of local bonds in September, following a $4.53 billion sell-off in the previous month. The South Korean won was trading at 1,352.8 won per dollar at the close of September, compared to 1,368.6 won a month prior.