Foreign ownership in Korean stocks topped 600 trillion won ($526.9 billion) for the first time as of the end of July on uninterrupted offshore investors’ shopping spree of local stocks since December.

According to Financial Supervisory Service on Wednesday, foreign investors as of the end of July have been gobbling up Korean securities worth 712.2 trillion won - 605.7 trillion won in listed stocks, making up 33.4 percent of the total market capitalization, and 106.5 trillion won in listed bonds, accounting for 6.4 percent of the total.

It was the first time foreigners’ Korean stock ownership to exceed the 600 trillion won threshold, thanks to their buying spree that started December and higher stock prices from recent rally.

In July alone, foreign investors net purchased 579 billion won worth of shares including 356 billion won in Kospi-listed firms and 223 billion won in Kosdaq-listed firms. By region, investors from the United States net purchased 900 billion won worth shares in the month, Europe 400 billion won, and Asia 200 billion won, while the Middle East net sold 800 billion won.

Entering mid-July, offshore investors’ net buying, however, started to taper, and it remains to be seen when their voracious appetite for Korean stocks would revive amid geopolitical risk.

As of the end of July, investors from the United States held 253.7 trillion won worth of shares, the largest 41.9 percent of total foreign ownership, followed by investors from Europe with 171.5 trillion won, Asia 76.3 trillion won, and the Middle East 25.3 trillion won.

By Lee Yong-gun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]