TLDR
- International funds liquidated more than $6.6 billion in Samsung and SK Hynix stock within one week
- The consecutive selloff has continued for 12 uninterrupted trading days beginning May 7
- Combined sales of these two chip makers represented 73% of total foreign net divestment in South Korean equities last week
- Capital flows redirected toward robotics and energy storage system (ESS) companies
- Market experts interpret this as strategic portfolio rebalancing following substantial semiconductor sector appreciation
International investors divested more than 10 trillion South Korean won — approximately $6.6 billion — in Samsung Electronics and SK Hynix equity during the past week. This divestment extends an unbroken sequence spanning 12 consecutive trading sessions.
Samsung Electronics Co., Ltd., SMSN.L
The figures originate from Korea Exchange and Yonhap Infomax, encompassing the trading week commencing May 18.
Global funds disposed of a net 5.33 trillion won in SK Hynix equity and 5.26 trillion won in Samsung Electronics stock throughout this timeframe.
Combined, these two technology giants comprised 73 percent of all international net divestment within the Korean equity market last week. Aggregate foreign net selling of South Korean securities totaled 14.45 trillion won during the period.
The divestment pattern initiated on May 7, marking the shift to net selling by overseas investors. Throughout the complete 12-session sequence, they liquidated a net 19.53 trillion won in SK Hynix and 18.87 trillion won in Samsung Electronics.
These two semiconductor companies exclusively represented 82.9 percent of the cumulative 46.34 trillion won in foreign net divestment across that timeframe.
Additional companies experiencing international selling pressure included Hyundai Mobis, Hyundai Motor, LG Electronics, and Samsung Electro-Mechanics.
Capital Reallocation Destinations
While liquidating semiconductor positions, overseas investors entered alternative segments of the Korean equity market.
Within the primary Kospi exchange, they acquired a net 370 billion won of Doosan Robotics equity and 148.9 billion won of Samsung SDI stock. Samsung SDI specializes in battery technology and energy storage solutions.
On the secondary Kosdaq exchange, foreign participants recorded net purchases totaling 1.29 trillion won in securities overall.
Fadu, a fabless semiconductor company specializing in storage infrastructure for artificial intelligence data centers, experienced foreign net acquisitions of 155.6 billion won. Seojin System, which manufactures ESS and telecommunications infrastructure, attracted 128 billion won in international investment.
Market Experts Attribute Movement to Strategic Rebalancing
Financial analysts characterize the divestment as a tactical rebalancing maneuver rather than diminished confidence in the semiconductor industry.
Chip manufacturer stocks had experienced substantial appreciation during the period preceding the selloff. Consequently, their proportion within international investment portfolios exceeded strategic allocation targets.
“Global investors likely responded through selling activity as the weighting of Korean semiconductor equities in their portfolios expanded dramatically following steep valuation increases,” explained Kang Jin-hyuk, an analyst at Shinhan Securities.
He further noted that capital appears to be flowing toward securities demonstrating earnings improvement while maintaining relatively modest valuations.
The worldwide robotics and ESS sectors are recognized as expansion areas, propelled by demand from physical AI applications and artificial intelligence data center infrastructure.
As of May 22, the Kospi index settled at 2,847.71 points, advancing 0.41 percent for the session.
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