Last month, $13.5 billion in foreign stock investment funds flowed out of Korea's stock market on a net basis. It was the largest amount on record. It appears to be due to more investors taking profits as domestic share prices surged.
According to the "Trends in international finance and foreign exchange markets since Feb. 2026" that the Bank of Korea released on the 12th, foreign securities investment funds saw a net outflow of $7.76 billion last month. This was the second-largest monthly amount on record after July 2008 (-$8.97 billion).
The large outflow of stock investment funds led the overall trend. Stock funds posted a net outflow of $13.5 billion, marking a fourth straight month of net outflows since Nov. last year (-$9.13 billion). The net outflow was the largest on record. The previous peak was $11.04 billion in March 2020.
The Bank of Korea (BOK) said, "Stock funds recorded the largest monthly net outflow on record due to heightened caution related to artificial intelligence (AI) investments and profit-taking sales following the rise in domestic stock prices."
Bond investment funds saw a net inflow of $5.74 billion. They have recorded net inflows for four straight months since Nov. last year (+$11.81 billion). The Bank of Korea (BOK) explained that net inflows continue, supported by bargain hunting amid rising market interest rates and solid investment demand centered on the private sector.
Meanwhile, the average trading range and daily change rate of the won-dollar exchange rate last month were 8.4 won and 0.58%, respectively, wider than the previous month (6.6 won and 0.45%, respectively). The Bank of Korea (BOK) noted, "Despite corporations' dollar selling, the exchange rate rose due to factors such as foreigners' net selling of domestic stocks and the expansion of conflicts in the Middle East."