Top 10 Foreign Picks Soar with 145% Average Return
4 out of 10 Individual Picks Decline, Averaging Only 37% Return
On October 9, Yonhap News reported that this year, foreign investors in the domestic stock market have achieved an average return approximately four times higher than that of individual investors. Analysts attribute this gap to the fact that foreign investors concentrated their investments in large-cap technology stocks such as semiconductors, while individual investors focused more heavily on certain growth stocks and secondary battery shares, widening the difference in returns.
This year, foreign investors in the domestic stock market have achieved an average return approximately four times higher than that of individual investors. Image to aid in understanding the article.
According to data from the Korea Exchange cited by Yonhap News, the average stock price increase for the top 10 stocks most heavily bought by foreign investors from the beginning of this year through October 2 reached an impressive 145.6%. This figure far surpasses both the KOSPI index increase during the same period (47.9%) and the average return for the top 10 stocks most heavily bought by individual investors (37.0%).
The stock most purchased by foreign investors was Samsung Electronics, with net purchases totaling 5.659 trillion won. The share price, which stood at 53,200 won at the beginning of the year, recently rose to around 89,000 won, marking a 67.3% increase.
SK Hynix followed, rising 127% during the same period and significantly boosting foreign investors' returns. Foreign investors bought 3.539 trillion won worth of SK Hynix shares.
Other major net purchases by foreign investors that also recorded high returns included Hanwha Aerospace (241%), Hyundai Rotem (355%), Hyosung Heavy Industries (259%), and Isu Petasys (189%). Kakao (56%), Korea Electric Power Corporation (77%), Samsung Electro-Mechanics (58%), and Hyundai Mobis (26%) also posted strong returns.
In contrast, individual investors lagged behind in terms of performance. Their most heavily purchased stock was Naver, with net purchases totaling 2.069 trillion won, but the share price increased by only 27.2%.
The second most purchased stock, Samsung SDI, fell by 14.8%, while Hyundai Motor Company (3.8%) and SK Telecom (-1.5%) also failed to show significant gains.
Additionally, LG Electronics (-8.5%) and CJ CheilJedang (-8.6%) declined, and while some stocks such as Alteogen (52.3%) and Hanmi Semiconductor (21.9%) performed relatively well, they were not enough to lift the overall returns for individual investors.
Experts attribute the superior returns of foreign investors to their proactive response to the recovery in the semiconductor sector. In fact, Samsung Electronics and SK Hynix have continued to rise steadily, supported by growing demand for AI memory and expectations of price recovery.
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