📈 Five-year high: Foreign ownership of South Korean equities climbed to 32.9% in December, the highest level since April 2020. The KOSPI closed 2025 up 75.7%.
💾 Chips over breadth: The electronics sector alone attracted KRW 4.5tn (~USD 3.1bn) in foreign inflows. SK hynix (~USD 1.5bn) and Samsung Electronics (~USD 1.0bn) led the charge.
🏭 Foreign majority: Overseas ownership rose to 53.8% at SK hynix and 52.3% at Samsung Electronics. International investors now effectively control Korea’s most important chip stocks.
💵 Not just stocks: In parallel, KRW 8.8tn (~USD 6.1bn) flowed into Korean bonds, mainly short- and mid-term maturities. Full-year 2025: equities about –USD 4.7bn, bonds +USD 44bn.
⚠️ Warning signs: KCIF sees rising memory prices and supply tightness as the main drivers, but warns of volatility and an AI bubble. Foreign investors are positioning early for an earnings rebound at Korea’s chipmakers.
Background
After years of being seen as undervalued and dominated by chaebols, foreign investors are returning. Compared with Taiwan’s semiconductor plays, Korean chip stocks still offer room for upside.
Political factors also play a role. Corporate governance reforms, dividend incentives, and broader capital market reforms are strengthening Korea’s equity story.
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