Foreign ownership in the South Korean stock market reached its highest level in five years and eight months in December. Investors bought a net 3.5 trillion won worth of shares, raising their holdings to 32.9% of total market capitalization. This surge stems from strong global demand for memory chips and government reforms.
Foreign ownership in the South Korean stock market climbed to 32.9% of total market capitalization in December, the highest since April 2020 and marking five years and eight months of gains. According to a report from the Korea Center for International Finance (KCIF), foreigners were net buyers of 3.5 trillion won ($2.4 billion) in local shares that month. This contrasts with the Financial Supervisory Service (FSS) figure of 29.6% as of November, with FSS December data still pending.
In the electronics sector, foreign investors scooped up a net 4.5 trillion won, including 2.2 trillion won in SK hynix and 1.4 trillion won in Samsung Electronics. As a result, SK hynix's foreign ownership rose to 53.8% from 53.2% a month earlier, while Samsung Electronics edged up to 52.3% from 52.2%.
Foreigners also bought a net 8.8 trillion won in bonds last month. The KCIF attributes this influx to expectations of robust global demand for memory chips boosting Korean chipmakers. Seoul's policies to reform the stock market and enhance corporate value further drew in investors.
South Korea's benchmark KOSPI index closed at 4,214.17 on December 30, 2025—the last trading day of the year—up 75.7% from the year's first session. This rally underscores the market's resilience amid foreign capital flows.
