Foreigners net sell 20.3tn won on KOSPI, led by Samsung and SK Hynix
In short
Foreign investors net sold 20.305 trillion won of KOSPI shares between September 1 and October 2, with SK Hynix and Samsung Electronics accounting for 84.7% of the total, according to Korea Exchange data cited by Maeil Business and Asia Economy. Foreign ownership of SK Hynix fell to 49.76%, its lowest since May 2023, and Samsung Electronics slipped to 46.41%. Despite the selling, the value of foreign holdings in the two chipmakers rose by about 80 trillion won as their share prices climbed, and the pace of selling slowed in the first two days of October.
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Foreign investors net sold 20.305 trillion won of KOSPI shares between September 1 and October 2, according to Korea Exchange data cited by Maeil Business and Asia Economy. The selling was concentrated in the two largest semiconductor stocks: SK Hynix accounted for 12.009 trillion won of net sales and Samsung Electronics 5.186 trillion won, together 84.7% of the total. [ 2 , 3 ]
The outflows pushed foreign ownership rates to their lowest levels of the year. SK Hynix's foreign holding rate fell from 50.57% on September 1 to 49.76% on October 2, which both Maeil Business and Asia Economy describe as the lowest since May 2023, about three years and four months. Samsung Electronics' rate slipped from 46.71% to 46.41%, touching 46.40% on September 30. Asia Economy, citing Korea Exchange and Yonhap Infomax data that include after-market trading that opened on September 15, said foreigners were net buyers on only 7 of 22 trading days and that the foreign share of KOSPI market capitalisation dropped to 39.66%. [ 2 , 3 ]
Even so, the value of foreign holdings in the two companies rose by about 80 trillion won over the period, Maeil Business reported. Foreign investors held 5.88 million fewer SK Hynix shares, but the value of that stake rose 7.0% to 669.2 trillion won; Samsung holdings fell by 17.5 million shares while their value rose 5.1% to 748.9 trillion won. Samsung shares gained 2.41% and SK Hynix 8.8% over the period. Maeil Business attributed the price gains to large share buybacks by both companies and to rising HBM and DRAM prices amid expanded AI infrastructure investment, which raised expectations for improved earnings. [ 2 ]
Asia Economy attributed the selling to continued profit-taking after sharp first-half gains in large semiconductor stocks, alongside the prolonged war between the United States and Iran and rising interest rates in the United States and Europe. It said the pace of selling weakened at the start of October, with 243 billion won of net buying on October 1 and 190 billion won of net selling on October 2, after more than 3 trillion won of net selling on September 28. [ 3 ]
Attention now turns to the earnings season. Micron Technology, which Asia Economy said reports first among the three global memory makers and is seen as a bellwether for the industry, announced strong results on September 30, and Samsung Electronics is expected to release preliminary third-quarter results around October 8. Han Ji-young of Kiwoom Securities said “macro uncertainty will pass its peak this month and securing earnings visibility after the third-quarter earnings season will act as an incentive for foreign net buying”. Lee Jae-won of Yuanta Securities said the smaller scale of selling on October 1, even as the index rose strongly, was “the first change that confirms the possibility of supply normalising if long-term rates stabilise”. [ 3 ]
Korea Economic Daily reported the same net selling figure and said the pace of foreign selling is slowing, with foreign money potentially returning around the third-quarter earnings announcements. [ 1 ]
Why it matters
Foreign flows are a major driver of the KOSPI, where chipmakers dominate market capitalisation, so the concentration of selling in Samsung Electronics and SK Hynix moves the index and the two companies' shareholder bases. The documents point to the upcoming third-quarter earnings season, beginning with Samsung Electronics' preliminary results, as the next test of whether foreign money returns. Analysts cited say the scale of selling shrank even on strong index gains, which they describe as a first sign of possible normalisation.
Key facts
- Foreign investors net sold 20.305 trillion won on the KOSPI from September 1 to October 2, according to Korea Exchange data. [ 2 , 3 ]
- SK Hynix accounted for 12.009 trillion won of the net selling and Samsung Electronics 5.186 trillion won, or 84.7% of the total. [ 2 , 3 ]
- SK Hynix's foreign ownership rate fell from 50.57% on September 1 to 49.76% on October 2, the lowest since May 2023. [ 2 , 3 ]
- Samsung Electronics' foreign ownership rate fell from 46.71% to 46.41%, hitting 46.40% on September 30. [ 2 , 3 ]
- Foreign holdings of the two chipmakers rose by about 80 trillion won in value even as share counts fell, because Samsung rose 2.41% and SK Hynix 8.8%. [ 2 ]
- Foreigners were net buyers on only 7 of 22 trading days in the period, and the foreign share of KOSPI market capitalisation fell to 39.66%. [ 3 ]
- Samsung Electronics is due to release preliminary third-quarter results around October 8, after Micron reported strong results on September 30. [ 3 ]
Confirmed by several sources
- Foreign investors net sold 20.305 trillion won of KOSPI shares between September 1 and October 2, Korea Exchange data show. [ 2 , 3 ]
- SK Hynix and Samsung Electronics were the most heavily sold stocks, at 12.009 trillion won and 5.186 trillion won respectively, together 84.7% of net selling. [ 2 , 3 ]
- SK Hynix's foreign ownership rate was 49.76% on October 2, the lowest in about three years and four months. [ 2 , 3 ]
- Samsung Electronics' foreign ownership rate was 46.41% on October 2 and touched 46.40% on September 30. [ 2 , 3 ]
Still unclear
- Whether foreign money will return to the KOSPI This is a forecast offered by analysts and by Korea Economic Daily, not a reported fact; Asia Economy attributes the view to named analysts at Kiwoom Securities and Yuanta Securities, and says the third-quarter earnings season is the trigger to watch.
- The reasons for the selling Asia Economy attributes the outflow to profit-taking after first-half gains in large semiconductor stocks, the prolonged US-Iran war and rising interest rates in the United States and Europe, while Maeil Business points to buybacks and AI-driven HBM and DRAM price gains lifting earnings expectations; both are interpretations of the data rather than stated causes.
- The exact date of Samsung Electronics' third-quarter preliminary results Asia Economy says only that they are expected around October 8; no other document mentions the schedule.
- How much selling took place on each individual day Only two daily figures are given, both by Asia Economy: 243 billion won of net buying on October 1 and 190 billion won of net selling on October 2.
What local media are saying
Timeline, local time
- Korea Economic Daily reports that foreign investors net sold more than 20 trillion won of Korean shares in the past month, that the selling is slowing, and that foreign funds could return around third-quarter earnings announcements. [ 1 ]
- Maeil Business reports, citing Korea Exchange data, that foreigners net sold 20.305 trillion won on the KOSPI from September 1 to October 2, that SK Hynix and Samsung Electronics made up 84.7% of it, and that their foreign ownership rates hit year lows while the value of foreign holdings rose about 80 trillion won. [ 2 ]
- Asia Economy reports the same net selling figure including after-market trades, notes foreigners were net buyers on only 7 of 22 trading days, that the foreign share of KOSPI market capitalisation fell to 39.66%, and that Samsung Electronics' preliminary third-quarter results are due around October 8. [ 3 ]