"Foreign Investors Dumped 1 Trillion Won as the 'Samsung Electronics and SK hynix Era' Fades. Are They Now Piling Into This Stock? Is KOSDAQ Just Getting Started?"

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[The Financial News] Foreign investors reportedly extended their net selling streak in the domestic stock market to 12 consecutive trading days, marking their longest selling run of the year.
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In particular, they were found to have sold more than 1 trillion won worth of Samsung Electronics and SK hynix over the past week. At the same time, they also shifted funds into stocks related to robots, Artificial Intelligence (AI) infrastructure, and Energy Storage System (ESS), signaling a change in investment direction.
According to Maeil Business Newspaper on the 25th, the Korea Exchange (KRX) said foreign investors net sold 534.65 billion won worth of SK hynix and 527.78 billion won worth of Samsung Electronics in the KOSPI Market between May 18 and 22. Combined, the two stocks accounted for 1.06243 trillion won in net selling.
During the same period, foreign investors net sold 1.43066 trillion won in total in the KOSPI Market. About 74% of that amount was concentrated in sales of the so-called 'Samsung Electronics and SK hynix' duo.
Foreign investors also reduced their exposure to auto and electronics stocks, in addition to semiconductors. They net sold 715.9 billion won worth of Hyundai Mobis, while also dumping Hyundai Motor Company (599.2 billion won), LG Electronics (324 billion won), and Samsung Electro-Mechanics (292.9 billion won), taking profits in most of the large-cap stocks.
The money flowed into robots, Energy Storage System (ESS), secondary batteries, and the KOSDAQ market. The stock foreign investors bought the most in the KOSPI Market last week was Doosan Robotics, with net purchases worth 369.8 billion won. They also bought 149 billion won worth of Samsung SDI.
In the KOSDAQ market, foreign investors net bought 1.2927 trillion won during the same period. PADO, Seojin System, and EcoPro ranked among the top net-bought stocks, with 158.1 billion won, 128 billion won, and 115.6 billion won, respectively.
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Market watchers say the change in foreign investors' strategy appears to be linked to expectations for broader AI industry growth and rising demand for power infrastructure. Doosan Robotics and PADO are classified as stocks tied to physical AI and AI infrastructure, respectively, while Samsung SDI and Seojin System are seen as beneficiaries of rising power demand driven by AI.
Brokerages are also interpreting the recent foreign selling as part of a portfolio rebalancing process after the sharp rally in semiconductor stocks. In other words, funds are moving out of semiconductors after profit-taking and into theme stocks that still have room to rise.
Jin-hyuk Kang, a researcher at Shinhan Securities, told Maeil Business Newspaper, "It is possible that foreign investors responded with selling as the weight of Korean semiconductor stocks in their portfolios rose sharply," adding, "Funds are rotating into theme stocks whose share prices have lagged despite improving earnings."
He added, "If the scale of foreign net selling narrows after early June, it would not be necessary to interpret that as a sign of a long-term correction."
y27k@fnnews.com Seoyoon Kyung Reporter