Foreign ownership of South Korean stocks hit 37.18% of total market capitalization in January, the highest in nearly six years. This surge was driven by net purchases in the shipbuilding, defense, and nuclear power sectors. Data from the Korea Exchange shows it as the peak since April 2020.
According to the Korea Exchange (KRX), foreigners' stock holdings rose to 37.18% of total market capitalization on January 7, marking the highest level since April 9, 2020, when it stood at 37.34%. The uptick began with offshore investors buying shares in the semiconductor sector during the second half of last year and extended to shipbuilding, defense, and nuclear power sectors this month.
In the second half of last year alone, foreign investors net purchased 14.1 trillion won ($9.7 billion) worth of Samsung Electronics shares. This month, the most sought-after stocks were Hanwha Ocean, Doosan Enerbility, and Naver, in that order.
Investments in shipbuilding and nuclear power were fueled by expectations of large-scale orders amid rising global demand. Those in the defense sector appear to have been boosted by tensions arising from U.S. President Donald Trump's threat to acquire Greenland.
This trend in foreign buying highlights the appeal of Korean stocks and reflects investor sentiment tied to global economic developments.
