(Seoul=NSP NEWS AGENCY) = Last month, foreign investment in domestic securities saw a net outflow of $2.14 billion. This is because semiconductor growth is accelerating in China, Taiwan, and the United States, but the growth potential of domestic semiconductor companies is assessed to be weak amid political turmoil.
According to the ‘International Finance and Foreign Exchange Market Trends after November 2024’ released by the Bank of Korea on the 12th, foreign investors’ domestic securities investment funds had a net outflow of USD 2.14 billion(KRW 3.6662 trillion) last month. This is the third consecutive month of net outflows since September, when the country recorded its first net outflow in 11 months.
Foreign stock funds had a net outflow of USD 2.95 billion(KRW 4.22735 trillion) last month. This is the fourth consecutive month since the net outflow of USD 1.85 billion(KRW 2.65105 trillion) in August.
The Bank of Korea explained, “Stock funds have been flowing out due to concerns about the growth potential of domestic semiconductor companies and global geopolitical risks.”
Foreign bond funds saw a decrease in net inflows due to a slowdown in foreign investment ahead of the end of the year and a decrease in incentives for short-term arbitrage. While net inflows amounted to $4.01 billion(KRW 5.74633 trillion) in October, net inflows last month were limited to $810 million (KRW 1.16073 trillion).
By Soon-ki Lee(s8789@nspna.com) and Soo-in Kang(sink606@nspna.com)
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