Korean stocks were sold for 3.5 trillion won by foreign investors today. Samsung and SK Hynix are facing global interest rate tests

Comparative news, Korea Exchange data shows that foreign investors sold off massively in the Korean stock market on the 19th, with a net sale of 3.485 trillion won in a single day. Institutional investors also had a net sale of 1.324 trillion won, while individual investors bought 4.633 trillion won to bear the selling pressure.

Previously, foreign investors made net purchases in the Korean stock market for 5 consecutive trading days (11th to 18th), with a cumulative purchase volume of 8.129 trillion won. However, the sales amount in a single day on the 19th reached 42.9% of the previous cumulative purchase amount, and the market began to pay attention to whether the return trend of foreign investment could continue.

Recently, foreign purchasing power has mainly been concentrated in the semiconductor sector. According to the data, between the 12th and 18th, about 87% of net foreign purchase capital went to semiconductor stocks, especially Samsung Electronics and SK Hynix. On the 18th, the total net foreign investment in the Korean stock market was only 91 billion won, but the semiconductor sector attracted more than 1 trillion won in capital inflows, indicating that foreign capital is more betting on the AI chip cycle than fully restoring the risk appetite of the Korean stock market.

This shift in foreign investment was mainly affected by the rapid rise in US and Japanese long-term treasury bond yields. The yield on US 30-year treasury bonds rose to 5.337% intraday on the 18th, the highest level since 2007; the yield on Japanese long-term treasury bonds also continued to rise, triggering increased volatility in the global bond market.

According to market analysts, the rise in long-term interest rates in the US is not mainly due to expectations that the Federal Reserve will raise interest rates again, but is affected by factors such as the widening US fiscal deficit, increased pressure to issue treasury bonds, and investment in AI data centers driving increased issuance of large technology corporate bonds. Since the increase in long-term bond yields is significantly higher than short-term interest rates, the market is more inclined to interpret this as an increase in term premiums.

If long-term interest rates between the US and Japan remain high, foreign capital flows in the South Korean stock market may be further pressured. Due to the high weight of exports and semiconductors in the Korean stock market, Korean stocks are sensitive to changes in US market interest rates, dollar trends, and global liquidity, and foreign investors may continue to make profit settlements in recent profitable stocks such as Samsung Electronics and SK Hynix.

However, according to some opinions, this round of interest rate shock may not necessarily evolve into a continuous withdrawal of funds. The pressure to issue treasury bonds, which has recently driven the rise in US long-term bond yields, may ease in stages. At the same time, if US inflation and geopolitical risks cool down, term premiums may fall back, and foreign capital may still flow back into the semiconductor sector with high profit certainty.

Currently, the Korean market's own ability to accept foreign sales has declined. As of the 18th, the deposit volume of Korean investor accounts was 104.7551 trillion won, a significant decrease from about 130 trillion won at the end of June; the credit transaction financing balance was also below the June high. Therefore, future interest rate trends between the US and Japan will continue to be a key variable affecting the capital side of the Korean stock market. (Daum)

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