Foreign Investors' Storm Buying of Korean Stocks Hits 7.3 Trillion Won in February... Largest in 10 Years

Foreign Investors' Net Inflow into Korean Stock Market in February Hits Largest Since September 2013
Government Value-Up Expectations and Semiconductor Industry Recovery Influence

Stock prices and exchange rate trends are displayed on the wall monitors of the Hana Bank dealing room in Myeongdong, Seoul. Photo by Younghan Heo younghan@

Last month, the net inflow of foreign investors into the Korean stock market reached the highest level in over a decade.

According to the Bank of Korea's "International Financial Foreign Exchange Market Trends since February 2024" report released on the 13th, the net inflow of foreign investment funds into domestic stocks last month amounted to $5.59 billion (approximately 7.3 trillion KRW). This is the largest figure in 10 years and 5 months since September 2013, when it reached $7.66 billion.

The Bank of Korea analyzed that the increase in foreign investment in Korea was due to continued expectations of a recovery in the semiconductor industry and anticipation of government measures related to the undervaluation of the domestic stock market.

Bond funds also saw an expanded net inflow. Last month, the net inflow of foreign funds into domestic bonds was $2.52 billion, up from $1.89 billion recorded the previous month.

The Bank of Korea stated that the net inflow expanded as foreign investors, counterparties in bond forward purchases aimed at improving the solvency ratio of domestic insurance companies, continued to demand long-term bonds for hedging purposes.

The total net inflow of foreign investment funds combining stocks and bonds was $8.1 billion, the largest since May of last year.

In February, the KRW-USD exchange rate declined due to the global weakening of the US dollar and the increased inflow of foreign stock funds. Exchange rate volatility also decreased compared to the previous month, linked to a reduction in global volatility.