Foreign fund outflow from S. Korean financial market hits 13-month high

Source: Xinhua | 2019-12-11

Foreign fund outflow from the South Korean financial market hit the highest in 13 months in November, central bank data showed Tuesday.

Foreign investors sold domestic stocks and bonds worth 3.96 billion U.S. dollars in November, marking the biggest foreign capital outflow in 13 months since October last year, according to the Bank of Korea (BOK).

Foreign capital of 2.44 billion U.S. dollars withdrew from the domestic stock market, while 1.52 billion U.S. dollars flowed out of the local bond market.

Offshore investors were net sellers in the local stock market for four straight months amid a lingering worry about the global trade dispute.

Export, which makes up about half of the South Korean economy, kept falling for the 12th consecutive month through November.

Premium for credit default swap, which reflects credit risk for five-year government bonds, averaged 28 basis points in November, down 4 basis points from the previous month.

Volatility in the won/dollar exchange rate averaged 3.6 won per the U.S. dollar last month, down 0.3 won from the previous month.