South Korean stocks experienced a significant sell-off by foreign investors in February, reaching a record high net outflow. Data released Tuesday indicates growing concerns surrounding the impact of artificial intelligence and diminished expectations for interest rate cuts by the Federal Reserve fueled the market activity.
The Korea Center for International Finance (KCIF) reported that foreign investors net sold 19.9 trillion won (US$13.5 billion) worth of South Korean stocks last month. This represents the largest monthly net sale volume ever recorded.
The portfolio adjustments primarily involved a net sale of 22.2 trillion won in shares of Samsung Electronics Co. and SK hynix Inc., the country’s leading semiconductor manufacturers.
