Stock market inflows rose sharply last month as global investors returned to the Kospi. Foreign buyers acquired more than 6 trillion won worth of shares. This marked the third consecutive month of net buying. The consistent increase in stock market inflows shows strong global confidence in South Korea’s stock market.
Samsung Electronics attracted the largest share of foreign capital. Offshore investors poured in 3.5 trillion won, representing more than half of total inflows. News of a major chip deal with Tesla fueled investor enthusiasm. The deal, valued at $16.5 billion, will support Samsung’s AI chip business. Investors expect the move to revive its struggling foundry segment.
Hanwha Ocean ranked second in foreign interest, drawing 858 billion won in net investment. Optimism around the Korea-US shipbuilding alliance boosted the shipbuilder’s appeal. The “Make American Shipbuilding Great Again” initiative gained investor attention. Hanwha Ocean’s strategic role in the deal strengthened its market position. This helped it gain momentum in the defense and maritime sectors.
SK Square, Isu Petasys, and Hanwha Aerospace followed as top foreign picks. SK Square received 457 billion won in foreign inflows. Isu Petasys brought in 329 billion won, while Hanwha Aerospace gained 249 billion won. These firms benefited from their roles in tech innovation and national defense programs.
However, not all tech companies performed well. Foreign investors sold 193.1 billion won worth of SK Hynix shares. A negative report from Goldman Sachs triggered the sell-off. The downgrade reflected concerns about memory chip demand. Investors reacted by shifting to more promising stocks.
Naver was the most sold stock among foreign investors. They sold off 668.2 billion won worth of shares. Other firms also saw strong selling pressure. Doosan Enerbility, Samsung SDI, Kakao Pay, and KB Financial Group faced major foreign exits. These moves showed growing caution in the market.
Despite the strong stock market inflows, the Kospi dropped to 3,119.41 in one day. That marked the sharpest single-day loss in two months. The fall followed the government’s new tax revision proposal. Additionally, uncertainty from US trade talks unsettled investors. Foreigners sold off 656 billion won in stocks that day alone.
Analysts believe the market correction was triggered by several macro factors. These include fading hopes for US rate cuts and ongoing global instability. Some expect the Kospi to move between 3,000 and 3,300 points in August. Furthermore, others believe it could fall as low as 2,900 points. Volatility will likely dominate the market in the coming weeks.
Stock market inflows remain strong, but momentum may slow without earnings growth. Experts recommend a cautious outlook as global risks persist. With few domestic catalysts, traders may react sharply to external events. Both retail and institutional investors should monitor economic signals closely. Analysts advise maintaining flexible strategies during this correction phase.
In conclusion, the stock market inflows played a major role in lifting key stocks like Samsung. However, macro headwinds could lead to short-term weakness. Investors need to stay alert and adaptable. August could bring more surprises if conditions shift. Caution and patience remain essential in navigating the market.
