[Click eStock] "Korea's Weight Is Low Within Emerging Market Funds"

Yuanta Securities analyzed on the 5th that the proportion of Korea within emerging market funds was 8.1% in October this year, the lowest level since August 2019. The highest investment proportion in Korea since 2018 was 10.2%, recorded in March 2021.

Researcher Kim Hoo-jung of Yuanta Securities explained, "Since 2020, due to conflicts between the US and China and the slowdown in economic growth, the influence of China within emerging market equity funds has decreased, with India and Taiwan taking its place," adding, "India has emerged as an alternative investment destination to China." He also added, "Taiwan has been positively influenced by the growth of TSMC."

Furthermore, he analyzed, "Mexico attracted attention last year due to expectations of increased exports to the US," but "investment proportions have rapidly decreased since the second half of this year due to tariff issues under former US President Donald Trump's administration."

He noted, "Looking at the country-wise shareholding status of Samsung Electronics, the increase rate of shares is relatively high in the UK and Norway," and predicted, "Compared to Norway, where sovereign wealth funds have significant influence, UK-based funds, which have a relatively higher proportion of short-term investors, are more likely to affect Samsung Electronics' supply and demand going forward."

Researcher Kim explained, "Foreign investors have recorded a net purchase of 5.9 trillion KRW in the domestic stock market this year," and added, "Foreign investors recorded a net purchase of 31.8 trillion KRW from November last year to July this year, but from August to October this year, they recorded a net sale of 14.3 trillion KRW."

Foreign investors have net sold 44.8% of the amount they net purchased over the previous eight months during the recent three months.

Researcher Kim emphasized, "From November last year to July this year, the UK and the US recorded net purchases of 17.9 trillion KRW and 14.1 trillion KRW respectively," and "since August, they have shown a net selling trend."