Foreign Securities Investors Net Inflow of 4.3 Trillion Won... "Expectations for Semiconductor Industry Improvement"

Last month, foreign investment in domestic securities increased significantly by more than 4 trillion won.

According to the "International Finance and Foreign Exchange Market Trends" released by the Bank of Korea on the 11th, foreign securities investment funds recorded a net inflow of 3.25 billion USD in April.

This means that the funds flowing into the Korean securities market exceeded the funds flowing out.

Based on the won-dollar exchange rate at the end of April (1,337.7 won), this amounts to approximately 4.347525 trillion won.

First, foreign investment in domestic stocks saw a net inflow of 910 million USD.

After recording net inflows for five consecutive months from October last year to February this year, it turned to a net outflow in March (-1.73 billion USD), but returned to a net inflow in just one month.

The Bank of Korea explained, "Foreign stock funds turned to net inflows due to expectations of improvement in the semiconductor industry outlook."

Last month, foreign investment in domestic bonds recorded a net inflow of 2.33 billion USD.

Foreign investment in domestic bonds showed net outflows of 2.73 billion USD in December last year, 5.29 billion USD in January this year, and 520 million USD in February, but has shown a net inflow trend since March (1.81 billion USD).

The Bank of Korea analyzed, "The bond funds saw an expansion in net inflows mainly centered on public funds."

The credit default swap (CDS) premium for Korean government bonds (based on the 5-year Foreign Exchange Stabilization Fund bonds) averaged 45 basis points (1bp = 0.01 percentage points) last month. This is 2 points higher than March (43).

CDS is a type of financial derivative that acts like insurance, compensating for losses when the issuing country or company defaults. Generally, if the economic risk of the country increases, the premium also rises.

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