Foreign Capital Posts Net Outflows for 9th Straight Month... $19.31 Billion Flows Out of Stock Market

BOK: Trends in International Finance and Foreign Exchange Markets Since October
Bond funds returned to net inflows for the first time in four months, while stock outflows widened

Foreign capital has recorded net outflows from the domestic securities market for nine consecutive months. Bond funds returned to net inflows for the first time in four months, but outflows from the stock market grew as investor sentiment weakened amid concerns about monetizing global investment in artificial intelligence (AI), among other factors.

The domestic stock market is displayed on a screen in the dealing room at Hana Bank's headquarters in Jung-gu, Seoul, on the 12th. The KOSPI opened higher at 5,385.94, up 10.58 points (0.20%) from the previous trading day, and has continued to fluctuate around the flatline. 2026.11.12 Photo by Kim Hyun-min

According to the “Trends in International Finance and Foreign Exchange Markets Since October 2026,” released by the Bank of Korea on November 12, foreign capital recorded net outflows of $13.7 billion from the domestic stock and bond markets last month. Net outflows have continued for nine consecutive months since February. However, the amount was down from $19.97 billion in September.

Foreign investment in stocks recorded net outflows of $19.31 billion. This marked the second consecutive month of net outflows, following $14.16 billion in September, and the outflow widened. A Bank of Korea official said, “Net outflows widened as investor sentiment weakened amid concerns about monetizing global AI investment, among other factors.”

Bond funds recorded net inflows of $5.61 billion, returning to an inflow trend for the first time in four months. The Bank of Korea said this was due to inflows of funds tracking the World Government Bond Index (WGBI) and a shift in short-term arbitrage incentives into positive territory.

The won-dollar exchange rate fell to 1,334.3 won at the end of October, down 18.5 won from 1,352.8 won the previous month. The Bank of Korea said increased dollar sales by exporters drove the decline, while a rise in the dollar index and concerns about monetizing AI investment limited the drop. So far this month, the rate has edged up, standing at 1,337.5 won as of November 10.

Won-dollar exchange rate volatility narrowed in October from the previous month. The average daily fluctuation was 4.6 won, and the rate of change was 0.34%.

This content was produced with the assistance of AI translation services.