Foreigners offload Korean stocks but net purchase ETFs this month: KRX

Foreign investors turned into net sellers on South Korea's stock markets this month, according to data released Sunday by the country's bourse operator, the Korea Exchange (KRX). Despite offloading shares on the main and secondary bourses, foreign investors remained net buyers of exchange-traded funds (ETFs) amid heightened market volatility.^[1][2]

According to the KRX, foreign investors offloaded a net 12.1 trillion won, equivalent to approximately $8.12 billion, on the main bourse through Thursday of this month. During the same period, they also sold a net 338.1 billion won on the tech-heavy secondary market. The bourse operator noted that foreigners acted as net sellers on the main bourse in eight of the 12 trading sessions through last week. The stock market was closed on Friday in observance of Constitution Day.^[1][2]

In contrast to their stock sell-offs, foreign investors scooped up 593.7 billion won worth of ETFs this month. They posted net purchases of these funds in 10 of the 12 trading sessions. Among the exchange-traded funds, the most popular ETF for foreign investors was KODEX Leverage, which tracks twice the index.^[1]