Foreign capital inflows to Korean securities hit 2-yr high in May: BOK

SEOUL, June 13 (Yonhap) -- Foreign investment in South Korean securities recorded the largest net inflow in nearly two years in May, supported by easing domestic political uncertainties and reduced concerns over the United States' trade policy, the central bank said Friday. Offshore investors purchased a net US$9.29 billion worth of local stocks and bonds last month, reversing a net outflow of $1.7 billion in April, according to the data from the Bank of Korea (BOK). It marked the largest monthly inflow since May 2023, when the figure reached $11.43 billion. Foreign investors net purchased $1.45 billion worth of local stocks in May, becoming net buyers for the first time since July 2024, while remaining net buyers of local bonds for the fourth consecutive month. "Progress in global trade negotiations, following the Trump administration's announcement of aggressive tariff measures, improved investor sentiment," the BOK said in a release. "Bond investment was driven by rising short-term arbitrage opportunities and strong demand for medium- to long-term debt instruments," it added. The local stock market had been under pressure since late last year, following former President Yoon Suk Yeol's declaration of martial law, which triggered political turmoil. As for the U.S.' tariff scheme, negotiations are under way between South Korea and the U.S. as they have agreed to pursue a "package" deal on trade and other related issues before July 8, when the 90-day pause on reciprocal tariffs is set to expire. Officials work at a dealing room of Hana Bank in Seoul on June 13, 2025. (Yonhap) graceoh@yna.co.kr(END)

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SEOUL, June 13 (Yonhap) — Foreign investment in South Korean securities recorded the largest net inflow in nearly two years in May, supported by easing domestic political uncertainties and reduced concerns over the United States’ trade policy, the central bank said Friday.

Offshore investors purchased a net US$9.29 billion worth of local stocks and bonds last month, reversing a net outflow of $1.7 billion in April, according to the data from the Bank of Korea (BOK).

It marked the largest monthly inflow since May 2023, when the figure reached $11.43 billion.

Foreign investors net purchased $1.45 billion worth of local stocks in May, becoming net buyers for the first time since July 2024, while remaining net buyers of local bonds for the fourth consecutive month.

“Progress in global trade negotiations, following the Trump administration’s announcement of aggressive tariff measures, improved investor sentiment,” the BOK said in a release.

“Bond investment was driven by rising short-term arbitrage opportunities and strong demand for medium- to long-term debt instruments,” it added.

The local stock market had been under pressure since late last year, following former President Yoon Suk Yeol’s declaration of martial law, which triggered political turmoil.

As for the U.S.’ tariff scheme, negotiations are under way between South Korea and the U.S. as they have agreed to pursue a “package” deal on trade and other related issues before July 8, when the 90-day pause on reciprocal tariffs is set to expire.