Foreigners Net Outflow of 5.3 Trillion KRW from Korean Stock Market in April

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jeong] Due to the tightening policies in the United States and the investment sentiment contraction caused by the Ukraine situation, foreign capital has withdrawn more than 5 trillion won from the domestic stock market.

According to the 'International Finance and Foreign Exchange Market Trends' announced by the Bank of Korea on the 12th, foreign stock investment funds recorded a net outflow of 4.26 billion dollars in April. Based on the won-dollar exchange rate at the end of April (1,255.9 won), this amounts to approximately 5.35 trillion won, marking the third consecutive month of net outflow.

The Bank of Korea explained, "Stock funds continued to experience net outflows due to the outlook for intensified tightening by the U.S. Federal Reserve (Fed) and the prolonged Ukraine situation leading to weakened investment sentiment. However, bond funds recorded net inflows centered on private funds."

Foreign bond investment funds saw a net inflow of 470 million dollars, mainly from private funds. This marks the longest streak in history with 16 consecutive months of net inflows.

Combining foreign investment funds in both stocks and bonds, securities investment funds recorded a net outflow of 3.78 billion dollars in April, continuing the net outflow for two consecutive months.

This content was produced with the assistance of AI translation services.