Foreign net capital outflow from Korean stock markets hit 7-year high in 2018

2019.01.11 14:32:51 | 2019.01.11 14:37:33

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Net outflow of foreign capital from Korean stock markets in 2018 hit $5.66 billion, the largest in seven years, amid widening gap in interest rates and economic performance between South Korea and the United States, according to Bank of Korea data on Friday.

Foreigners remained net investor of securities counting in stocks and equities, but the sum more than halved from $19.5 billion mainly due to unloading of Korean stocks. For the first time since 2015, non-Korean nationals took out more money than bringing in to invest in stock with net outflow at $5.66 billion, compared with net inflow of $11.45 billion in 2017. The net outflow was the largest since $9.2 billion in 2011.

Foreigners’ net inflow of capital for bond investment increased from $8.05 billion to $13.91 billion.

Trade standoff between the United States and China and faster increases in U.S. interest rates had hurt sentiment in the Korean stock markets, the central bank said.

By Lee Yu-sup and Cho Jeehyun

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