Foreign investors net sold nearly $110 billion in Korean stocks this year, increasing pressure on retail investors to absorb selling pressure

Odaily Planet Daily News Since the beginning of this year, foreign investors have withdrawn nearly $110 billion from the South Korean stock market, hitting a record high. The main reason is to avoid the rapid rise of the Korean stock market, which would lead to an imbalance in their portfolio allocation. This has forced domestic retail investors in South Korea to bear most of the buying pressure. After purchasing 42.4 trillion won in June, South Korean retail investors have accumulated a net purchase of 13.2 trillion won in KOSPI stocks this month.

As of July 14, the balance of margin financing used by retail investors to invest in KOSPI stocks stood at 28 trillion won, which hit a record high of 29.8 trillion won on June 24. French

According to Alexander Redman, Chief Equity Strategist at CLSA, "Korea remains the market with the highest overweight allocation in our portfolio, but I have started to reduce my position. What worries me is that the market is currently dominated by retail investors, as they are heavily using margin trading." (Jin Shi)