Global Funds Dump Nearly $5 Billion of Korean Stocks After Rally

Foreign investors sold a record 6.8 trillion won ($4.7 billion) of South Korean stocks on Friday, marking the largest single-day exodus in recent history. The selloff followed a nearly 50% rally in the Kospi Index this year. The Kospi Index dropped 1%, ending a six-day winning streak as global funds took profits. The mass selloff underscores growing caution after months of rapid gains in Korean equities. Local institutions and retail investors countered the trend by purchasing shares, offsetting some of the foreign outflows. This divergence highlights differing market sentiments among investor groups. The selloff reflects broader concerns about overheated valuations after the benchmark’s prolonged surge. Analysts suggest profit-taking was inevitable given the index’s sharp ascent. The move signals potential volatility ahead for Korean markets, as foreign investors reassess positions amid global economic uncertainty. The shift may test the resilience of recent gains.