Foreign Investors Push South Korean Stock Ownership to Five‑Year Peak
Updated (3 articles)
Foreign Holdings Reach 37.18% of Market Capitalization On January 7, foreign investors owned 37.18 % of South Korea’s total market cap, the highest share since April 9 2020 when it stood at 37.34 % [1]. The figure reflects a five‑year and nine‑month high for overseas participation in Korean equities [1]. Data were compiled by the Korea Exchange (KRX), which monitors daily ownership levels [1].
Shipbuilding, Defense, and Nuclear Power Lead Net Purchases Offshore investors poured large sums into shipbuilding, defense and nuclear power stocks throughout January, lifting overall foreign ownership [1]. These sectors benefited from expectations of sizable global orders and heightened geopolitical tension [1]. The surge followed a strong second‑half‑2025 semiconductor buying spree that set the stage for the current sectoral shift [1].
Samsung Electronics Attracts Massive Net Purchase Foreign investors net‑purchased Samsung Electronics shares worth 14.1 trillion won (≈ US$9.7 billion) in the second half of 2025 [1]. This single transaction contributed substantially to the upward trend in foreign ownership measured in early 2026 [1]. Samsung’s appeal underscores the continued confidence of overseas capital in Korea’s technology giants [1].
Top‑Traded Foreign‑Favored Stocks and Geopolitical Drivers The most popular shares among foreign buyers in January were Hanwha Ocean, Doosan Enerbility and Naver, in that order [1]. Investors were drawn to shipbuilding and nuclear power firms by expectations of large‑scale orders amid rising worldwide demand [1]. Defense‑sector purchases were likely encouraged by heightened tension after U.S. President Donald Trump’s threat to acquire Greenland [1].
Timeline
Apr 9, 2020 – Foreign investors hold 37.34 % of South Korea’s total market capitalization, the previous peak that the 2026 level later approaches. [1]
Mar 2020 – Foreign investors sell 12.5 trillion won of KOSPI shares, setting the record monthly outflow that November 2025 later surpasses. [3]
Jan 2021 – Korean retail investors purchase a net 22.3 trillion won of KOSPI shares, the largest monthly inflow on record and a benchmark for domestic buying power. [3]
Nov 2025 – Foreign investors dump 14.4 trillion won of KOSPI shares, the highest monthly net sale ever, eclipsing the March 2020 record. SK Hynix and Samsung Electronics account for 76 % of the outflow (8.7 trillion won and 2.2 trillion won respectively). Domestic retail investors buy a net 9.2 trillion won, the third‑largest monthly inflow. The index spikes to 4,221.87 on Nov 1, then falls to 3,926.59 by Nov 28, underscoring sharp volatility. [3]
Dec 2025 – Foreign investors net‑purchase 3.5 trillion won of Korean equities, raising their stake to 32.9 % of market cap—the highest since April 2020. Electronics drive the surge, with SK Hynix reaching 53.8 % foreign ownership and Samsung Electronics 52.3 % after net buys of 2.2 trillion won and 1.4 trillion won respectively. Bond buying totals 8.8 trillion won. The KOSPI closes the year at 4,214.17, up 75.7 % year‑to‑date. [2]
Jan 7, 2026 – Foreign holdings climb to 37.18 % of market capitalization, the strongest foreign presence in five years and nine months, just shy of the April 2020 high. Offshore investors pour money into shipbuilding, defense and nuclear‑power stocks, spurred by global demand and heightened geopolitical tension after U.S. President Donald Trump’s threat to acquire Greenland. Samsung Electronics alone attracts 14.1 trillion won of net foreign buying in H2 2025. The most‑traded foreign‑favored shares this month are Hanwha Ocean, Doosan Enerbility and Naver. The Korea Exchange compiles and releases the data. [1]