Foreign investors net sold approximately 8.7 trillion won in the Korean securities market this month while selectively purchasing stocks in semiconductor and Physical AI sectors including LG Electronics and Hanmi Semiconductor. The selling occurred amid a broader market decline that improved valuation attractiveness for certain stocks. Analysts note that foreign buying focused on market-leading industries and stocks with medium- to long-term growth expectations, with cumulative year-to-date foreign net selling reaching approximately 157 trillion won.
Foreign Investors Net Sold 8.7 Trillion Won in Securities Market This Month
According to Korea Exchange on the 22nd, foreign investors net sold approximately 8.7 trillion won in the securities market this month (excluding exchange-traded funds (ETFs)). During the same period, individual investors and institutions net bought approximately 7.79 trillion won and 402 billion won respectively, absorbing foreign selling. Year-to-date cumulative foreign net selling reached approximately 157 trillion won.
Foreign Investors Purchased LG Electronics, Hanmi Semiconductor, and Eight Other Stocks
Despite large-scale selling, foreign investors actively purchased certain stocks. The top 10 net buying stocks included LG Innotek, DB HiTek, Hanmi Semiconductor, Hyundai Motor, Samsung Electro-Mechanics, NAVER, Samsung C&T, Hyundai Rotem, Hyundai Mobis, and LG Electronics. LG Electronics and LG Innotek attracted attention on this day as expectations for LG Group and NVIDIA's Physical AI cooperation re-emerged. Samsung Electro-Mechanics and DB HiTek were analyzed as reflecting expectations for continued semiconductor sector strength. Samsung C&T was interpreted as driven by expectations for Samsung Electronics share value reassessment.
Analysts Cite Improved Valuations in Semiconductors and IT Hardware
Securities firms are noting that recent foreign net buying concentrated on existing leading stocks including semiconductors. These stocks saw reduced valuation burden as price levels declined amid recent volatile markets. Preference for major sectors including artificial intelligence (AI) and Physical AI appears to remain strong. Lee Kyung-min, researcher at Daishin Securities, stated that despite the KOSPI plunge, the current 12-month forward price-to-earnings ratio (PER) is positioned near historical lows, and as semiconductors and IT hardware that were in overheated territory entered undervalued zones relative to earnings, the possibility of foreign buying conversion is increasing.
Hyundai Motor and Hyundai Mobis Attract Buying After Price Declines
Foreign net buying top stocks also included Hyundai Motor and Hyundai Mobis. Both stocks saw increased undervaluation attractiveness as declines widened amid recent market corrections. As of this day, Hyundai Motor declined approximately 46.6% from this year's high, and Hyundai Mobis declined approximately 37.6%. Lee Sang-su, researcher at iM Securities, evaluated that while Hyundai Motor's stock price adjustment phase continues due to market volatility, major roadmaps including 2028 mass production plant completion and robot metaplant application center operation remain solid.
NAVER and Hyundai Rotem Show Growth Potential
NAVER and Hyundai Rotem also ranked in the top net buying stocks. NAVER carries expectations for AI Factory and won-denominated stablecoin business, while Hyundai Rotem possesses momentum for overseas order expansion. However, some analysts suggest that additional investor sentiment improvement factors are needed for foreign capital flows to clearly shift to buying dominance. Lee Jae-won, researcher at Yuanta Securities, added that for future foreign capital inflows, lower-than-expected US inflation index, easing of US-Iran geopolitical conflict, upward revision of hyperscaler capital expenditure estimates, and strong earnings are necessary.
FAQ
What stocks did foreign investors purchase in the Korean market this month?
Foreign investors purchased LG Innotek, DB HiTek, Hanmi Semiconductor, Hyundai Motor, Samsung Electro-Mechanics, NAVER, Samsung C&T, Hyundai Rotem, Hyundai Mobis, and LG Electronics as their top 10 net buying stocks this month.
Why did foreign investors buy semiconductor stocks despite overall selling?
Analysts state that semiconductors and IT hardware entered undervalued zones relative to earnings after recent market declines reduced price levels and valuation burden, and preference for AI and Physical AI sectors remains strong.
