Foreign holdings of Korean stocks at lowest level in 1 1/2 years amid Trump tariff woes

Despite the recent upbeat stock market, foreign ownership of Korean shares has fallen to the lowest level in nearly 1 1/2 years, data showed Sunday.

Foreign investors' holdings of Korean stocks on the benchmark Korea Composite Stock Price Index (KOSPI) accounted for 31.96 percent, or 676.43 trillion won ($468.53 billion), of the total market capitalization as of Thursday, according to the data compiled by Yonhap Infomax, the financial data firm of Yonhap News Agency.

It marked the lowest level since Sept. 20, 2023, when offshore investors owned 31.97 percent of KOSPI-listed stocks.

Foreign investors net sold local stocks for the sixth consecutive month in January. This month alone, they have sold a net 1.75 trillion won worth of stocks on the main bourse, even though the KOSPI has risen 8 percent so far this year.

Foreign sell-offs came amid concerns about the impact of U.S. President Donald Trump's sweeping tariffs on the Korean industry and the broader economy.

Investors also remained wary of the domestic political situation following now-suspended President Yoon Suk Yeol's shocking martial law declaration on Dec. 3, 2024, as well as weak growth momentum, according to experts.

"The tariff issue could further affect the domestic stock market, as chances seem limited for Korea to have negotiations with the U.S. and adjust the policy through top-level talks given domestic circumstances," said Lee Young-won, an expert from Heungkuk Securities.

Foreigners have sold 1.82 trillion won worth of top-cap Samsung Electronics so far this year, followed by shares of No. 1 carmaker Hyundai Motor, worth 701 billion won, and leading financial firm KB Financial Group shares, worth 316 billion won, the data showed.

On Friday, the KOSPI rose 0.31 percent to close at 2,591.05, marking the highest level since Oct. 30, 2024. (Yonhap)