The proportion of stocks held by foreigners among Korean stocks fell to the lowest level in 13 years.



According to the Korea Exchange, as of the 11th of last month, the total market capitalization of the stock market was 1,986.8 trillion won, of which the market cap of foreign stocks was 66.2 trillion won.



The share of stocks held by foreigners based on market capitalization was 30.51%, the lowest this year, and the lowest level in 13 years since 30.52% on August 13, 2009.



At the beginning of this year, the share of foreigners in the KOSPI market capitalization started at 33.50% and rose to 34.20% with the listing of LG Energy Solutions on January 25th, but has shown a decreasing trend since then.



Although the KOSPI has recently shown some recovery and is trying to rebound, foreign investors' expectations for the domestic stock market do not appear to be high.



In line with the rise of the KOSPI, foreigners net bought KRW 2.5 trillion in the KOSPI last month and switched to a net buying trend unlike in June (net selling KRW 5.4 trillion).



This month, too, it has an advantage of buying 1.8 trillion won.



However, from the beginning of this year to the 12th of this month, foreigners net sold 10.6 trillion won in the stock market, giving them a selling advantage overall.



Since the beginning of the year, the global stock market has been in an unstable state, and not only has the sentiment to avoid risky assets increased, but also the weak won and the inversion of Korea-US interest rates have made the KOSPI less attractive to foreigners.



As the preference for safe assets was highlighted and the strong dollar continued, the won/dollar exchange rate soared to 1,326.7 won during the day of the 15th of last month, continuing its high march.



The sharp rise in the won/dollar exchange rate acts as a negative factor for foreign supply and demand.



In addition, the fact that the US Federal Reserve recently raised the benchmark interest rate from 1.50-1.75% to 2.25-2.50%, causing the US benchmark interest rate to rise higher than the Korean benchmark interest rate (2.25%) is also putting a strain on foreign investment.