Tip:
Highlight text to annotate it
X
With the U.S. Federal Reserve poised to start winding down its massive stimulus program
soon, economic policymakers in Korea are trying to lessen fears about sudden capital outflows.
Capital flight is already being seen in some emerging economies, but Korea is benefitting
as investors see it as a safer bet than other countries.
Kim Ji-yeon reports. Foreign buyers continue to buy Korean shares in bulk, bringing an
influx of foreign capital into the country.
Other markets across Asia aren't so fortunate,... with investors pulling out of many other markets.
Buoyed by foreign buying and receding geopolitical concerns, Korea's benchmark KOSPI finished
above the 2-thousand mark Thursday for the first time in 3 months.
Foreign investors made net purchases of 1-point-3-billion U.S. dollars on Thursday...adding to the 6-point-2-billion
dollars over the past fifteen days.
This trend started in July with foreign investors net buyers of Korean stocks to the tune of
three-quarters of a million dollars.
This shot up to 2-point-2-billion U.S. dollars in August.
The Financial Supervisory Service said strong buying by U.S. investors last month was behind
the highest monthly net foreign purchases in over 2-and-a-half years.
Analysts also attribute the bumper month to foreign investors pulling out of 8 emerging
economies in August.
According to data by Hyundai Securities, while Korea recorded more than 2-billion dollars
of net foreign purchases in August, Taiwan saw around 1-point-5-billion dollars of net
foreign capital flight last month.
Goldman Sachs says the global economy seems to be steadily recovering and countries like
Korea and China should benefit the most from the rosier outlook.
It also said foreign purchases will be limited in countries with weak currencies such as
India, Indonesia and Thailand.
Meanwhile, Korea-based Hanyang Securities Company says the purchasing trend is expected
to continue since incoming U.S. capital is mainly based on long-term funds.
Kim Ji-yeon, Arirang News.