South Korea’s Capital Markets Report (December 2023)

SEOUL (Reuters) – South Korea’s capital markets in December experienced the largest foreign outflows since March 2020 due to heightened political uncertainty, according to central bank data.

Foreigners continued their selloff in the South Korean stock market for a fourth consecutive month, resulting in a net selling of $2.58 billion.

In the bond market, foreign investors became net sellers for the first time in nine months, with an outflow of $1.28 billion.

The total monthly outflow reached $3.86 billion, the largest since March 2020 when global financial markets were affected by the COVID-19 pandemic, according to the Bank of Korea.

During December, the Korean won weakened by 5.2% against the dollar, reflecting its largest monthly decline in 22 months, exacerbated by political uncertainty following President Yoon Suk Yeol’s short-lived martial law on December 3.