Foreign investors sold $62 billion worth of South Korean stocks, a move that sent the country's benchmark KOSPI index down 8%. The scale of the outflow marks one of the biggest foreign capital exits from the South Korean market in recent data.
The numbers behind the sell-off
The $62 billion figure covers a period of concentrated selling by overseas investors. The exact timeframe of the sales was not disclosed in the available data. The KOSPI's 8% decline came as the selling pressure mounted, wiping out billions of dollars in market value.
The drop hit large-cap and small-cap stocks alike. Foreign investors hold a significant portion of South Korean equities, so outflows of this size can amplify volatility across the board. The KOSPI now sits at levels not seen in recent months.
South Korea's financial regulators have not issued a public response to the data. The country has seen foreign capital leave in past episodes of global uncertainty, but the latest figures do not specify a cause for the exodus.
The $62 billion in sales represents a substantial chunk of total foreign holdings. How much more foreign investors might sell—or whether the outflow has stopped—remains an open question for the market.
