In December last year, foreigners made net purchases of $7.44 billion in the domestic stock market. In particular, as memory semiconductor prices rose, expectations grew that domestic semiconductor corporations' earnings would improve, and equity funds shifted to net inflows.
According to the "Trends in international finance and the foreign exchange market after December 2025," which the Bank of Korea (BOK) released on the 14th, foreign investors' securities investment funds recorded a net inflow of $42.06 billion last year. In the stock market, $7.07 billion saw net outflows, but the bond market recorded massive net purchases of $49.13 billion, leading to a large overall net inflow.
In December, the net inflow trend strengthened further. Foreign investors' securities investment funds recorded a net inflow of $7.44 billion. Equity funds saw an inflow of $1.19 billion, shifting from net outflows to net inflows, and the bond market saw an inflow of $6.26 billion.
The Bank of Korea (BOK) said, "Equity funds shifted to net inflows, helped by expectations of improved profitability at domestic semiconductor corporations due to rising memory prices," and noted, "Bond funds continued to see net inflows, centered on the public sector, despite a large volume of maturing bonds."
Among domestic bonds maturing in December last year, the amount held by foreigners was $6.49 billion, the largest scale for any December on record.
The won's value fluctuated. The won-dollar exchange rate, which was 1,470.6 won at the end of November, fell considerably after the announcement of foreign exchange market stabilization measures on Dec. 24, recording 1,439.0 won at the end of December. Thereafter, with the dollar strengthening this year, it inched up to 1,468.4 won on Jan. 12.
During the same period, the exchange rate per 100 yen fell 1.2% from 940.49 won to 929.43 won, while the won-yuan rate rose 1.4% from 207.88 won to 210.73 won.
Exchange rate volatility stayed at a level similar to the previous month. In December, the day-to-day won-dollar exchange rate range was 5.3 won, the same as November (5.3 won). The volatility rate was 0.36% in December, similar to November (0.37%).