Foreign investment in the South Korean stock market experienced its largest monthly net outflow ever in February, as per central bank data. Offshore investors sold a net $13.5 billion worth of local equities last month, surpassing the previous record set in March 2020. In contrast, foreign investors bought $5.74 billion worth of bonds in February, marking a significant shift in investment trends.
The total net outflow of foreign investment in local securities in February amounted to $7.76 billion, a stark reversal from the net purchase recorded in January. This marked the second-largest monthly net outflow since July 2008. The chief of the Bank of Korea’s international financial trends team attributed the outflow to caution over AI-related investments and profit-taking in the stock market.
In a separate development, South Korea’s science ministry announced the selection of around 4,600 individual science researchers to boost basic science research activities. These researchers will undertake individual projects under a government funding program, with a 25% increase in participants compared to the previous year. The ministry plans to allocate 643 billion won ($435 million) for these projects.
