Foreign investors return to South Korean stocks with record 7.2 trillion won single-day buying
AI Market Summary
Foreign investors recorded a one-day, record net buy of South Korean equities, signaling risk appetite returning after July's leverage-driven correction. Evidence that hedge-fund deleveraging is ~90% complete and short interest has eased suggests forced-selling pressure is fading. The flow reversal and improved sentiment are most supportive for Korea's benchmark and large-cap semiconductor-linked constituents, though ongoing index volatility highlights residual positioning and product-structure risks.
Impact level
● Medium
Affected assets
NCSIKOSPI2USD/USDT-3.19%
AI Insight · NCSIKOSPI2USD/USDTAI Insight
▲ Bullish
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Global investors are rebuilding positions in South Korean equities after July’s turbulence, with foreigners logging a record net purchase of 7.2 trillion won (around $5 billion) in a single session. Leveraged ETF assets tied to Samsung Electronics and SK Hynix shrank from nearly $50 billion in late June to about $17 billion, after volatility intensified. J.P. Morgan estimates hedge funds have completed around 90% of their deleveraging. The renewed inflows have supported South Korea’s main stock indexes and heavyweight technology shares.
