Foreign investors net purchased ₩3.29 trillion worth of Korean stocks on July 14-15, concentrating on semiconductor shares including SK Hynix and Samsung Electronics, according to Korea Exchange data. The buying spree followed ₩14.07 trillion in net selling from July 1-13. On July 16, foreign investors reversed course and net sold ₩1.39 trillion, with SK Hynix and Samsung Electronics accounting for the largest outflows. Analysts attributed the volatility to SK Hynix's American Depositary Receipt (ADR) premium reaching 51% on July 15, technical oversold conditions in the KOSPI, and subsequent negative semiconductor industry news from the US market.
Foreign Investors Net Buy ₩3.29 Trillion in Two Days Focused on Semiconductors
Foreign investors purchased ₩3.29 trillion in Korean Exchange-listed stocks over July 14-15. SK Hynix accounted for ₩1.996 trillion of the inflows, followed by SK Square (₩259 billion), Samsung Electronics (₩219 billion), Hanmi Semiconductor (₩184 billion), and LG Innotek (₩124 billion). The pattern contrasted with the prior period from July 1-13, when foreign investors net sold ₩14.07 trillion, with SK Hynix (approximately ₩8 trillion) and Samsung Electronics (approximately ₩6 trillion) ranking as the top two net-sold stocks on the exchange.
SK Hynix's ADR traded at a 51% premium to the domestic shares on July 15 after the ADR surged 27% on Nasdaq. Kim Jae-seung, a researcher at Hyundai Motor Securities, stated that "ADR premium expansion can increase the attractiveness of domestic shares for foreign investors" and referenced TSMC as a precedent where "global investors tended to buy relatively cheaper domestic shares when the ADR premium expanded beyond 25%."
The KOSPI fell below the 6,500 level during trading on July 14, bringing its 12-month forward price-to-earnings ratio to 6 times. Samsung Electronics' price-to-book ratio reached 1.78 times on July 13, while SK Hynix's fell to 2.45 times. Kim Yong-gu, a researcher at Yuanta Securities, stated that "foreign investors engaged in bargain hunting centered on semiconductors as selling pressure caused the index decline to expand."
Foreign Investors Reverse to Net Selling ₩1.39 Trillion on July 16
Foreign investors net sold ₩1.39 trillion in Korean Exchange-listed stocks on July 16. SK Hynix led net selling at ₩895.4 billion, followed by Samsung Electronics (₩218.2 billion) and Samsung Electro-Mechanics (₩70.9 billion). Lee Kyung-min, a researcher at Daishin Securities, stated that "net selling by foreign investors and institutions appeared centered on the semiconductor sector as semiconductor-related negative news emerged consecutively from the US stock market the previous day."
The negative news included reports that AI cloud company CoreWeave reviewed a hedging strategy using put options to prepare for memory price decline risks. Additionally, news emerged that data center construction in New York halted due to power supply and environmental concerns.
Analysts Link Exchange Rate Stability to Future Foreign Buying
Analysts project that foreign buying may resume if the exchange rate stabilizes. Kim, the Yuanta Securities researcher, stated that "whether the rebound continues depends on the continuity of foreign investors' net spot buying" and that "if the won-dollar exchange rate stabilizes through the Bank of Korea's base rate increase, foreign investors' capacity for net semiconductor buying will also expand."
FAQ
What did foreign investors do in Korean stocks on July 14-15?
Foreign investors net purchased ₩3.29 trillion worth of Korean Exchange-listed stocks on July 14-15, with ₩1.996 trillion concentrated in SK Hynix and ₩219 billion in Samsung Electronics.
Why did foreign investors reverse to selling Korean semiconductor stocks on July 16?
Foreign investors net sold ₩1.39 trillion on July 16, with analysts citing negative semiconductor news from the US market including CoreWeave's reported hedging strategy review and halted data center construction in New York due to power and environmental issues.
