Foreign Investors Trigger 2.5 Trillion Won Sell-Off—Largest in Over Four Years

[Financial News] The KOSPI fell to the 4,100-point range after foreign investors offloaded shares worth 2.5 trillion won. This marks the largest net selling by foreign investors in approximately four years and three months.
According to the Korea Exchange (KRX) on the 4th, the KOSPI closed at 4,121.74, down 100.13 points (2.37%) from the previous trading day, due to heavy selling by foreign investors and institutions. While individual investors made a net purchase of 3.21 trillion won, foreign investors and institutions recorded net sales of 2.51 trillion won and 737.2 billion won, respectively.
Notably, the scale of foreign investors’ net selling was the largest since August 13, 2021, when it reached 2.7 trillion won. At that time, a sharp rise in the US Dollar–South Korean Won exchange rate and concerns over falling Dynamic random-access memory (DRAM) prices led to a sell-off in semiconductor stocks. On this day as well, foreign investors took profits from large-cap semiconductor stocks, which had recently driven the KOSPI’s rise, leading to a decline in the index. Samsung Electronics saw net sales of 595.1 billion won, dropping 5.58%, while SK hynix recorded net sales of 1.48 trillion won, falling 5.48%.
Analysts in the securities industry noted that large-cap semiconductor stocks have entered an overheated phase after repeatedly reaching record highs. Lee Jae-won, a researcher at Shinhan Securities, stated, “SK hynix surpassed 620,000 won yesterday, showing signs of technical overheating,” adding, “The Relative Strength Index (RSI), a technical indicator reflecting upward and downward pressure on stock prices, reached 84.”
In addition to Samsung Electronics and SK hynix, other major stocks by market capitalization such as HD Hyundai Heavy Industries (-5.93%), Hyundai Motor (-4.63%), and HD Korea Shipbuilding & Offshore Engineering (HDKSOE) (-3.39%) also suffered significant declines.
In contrast, the Korean Securities Dealers Automated Quotations (KOSDAQ) closed at 926.57, up 12.02 points (1.31%) from the previous day. Foreign investors and institutions posted net purchases of 225 billion won and 167.5 billion won, respectively, while individuals recorded net sales of 370.7 billion won. Jungeun Lim, a researcher at KB Securities, explained, “While semiconductors, the defense industry, and automobiles were weak, sectors such as bio, rechargeable batteries, semiconductors, and the Materials, Parts, and Equipment Industry among KOSDAQ and small- to mid-cap stocks showed relative strength, continuing the trend of sector rotation.”

koreanbae@fnnews.com Bae Han-geul Reporter