BoK: Foreign investors withdrew more than 3 billion USD from the Korean stock market

BoK: Foreign investors withdrew more than 3 billion USD from the Korean stock market

According to the BoK, foreign investors net sold US$3.06 billion worth of domestic stocks in July amid concerns about a resurgence of the COVID-19 epidemic in “Kimchi”.

Operating on the Korean stock exchange. Photo: AFP/VNA

The Bank of Korea (BoK) said that foreign capital outflows from the Korean stock market have occurred in the past three months, amounting to $8.32 billion and $440 million respectively in the past three months. May and June.

This situation is attributed to a resurgence in COVID-19 cases. Recent statistics show that South Korea has recorded 1,987 new cases in 24 hours, marking the 37th day in a row that the number of new cases has exceeded 1,000.

In the bond market, foreign funds poured 5.57 billion USD into the Korean bond market in July. Accordingly, foreign investors have become net buyers in the bond market for the seventh consecutive month.

Korean media recently mentioned the risk that the “Kimchi” economy will fall into a recession right in the third quarter of 2021, due to the situation of the COVID-19 epidemic getting out of control while the supply of vaccines. interruption.

The ongoing fourth wave of COVID-19 infections in South Korea is highly likely to reduce private spending and business investment, sending Asia’s fourth-largest economy into a “double” recession.

Korea’s gross domestic product (GDP) in the second quarter increased by 0.7% compared to the previous quarter. This is also the fourth consecutive increase since the third quarter of 2020, after falling 3.2% in the second quarter and 1.3% in the first quarter of 2020.