Seoul, Feb 14
Foreign investors remained net sellers of South Korean stocks and bonds for the fifth month in a row in January amid concerns about weak economic growth momentum and uncertainties stemming from U.S. President Donald Trump's new tariff policies, the central bank said on Friday.

Offshore investors sold a net $1.78 billion worth of local stocks and bonds last month, following a net selling of $3.86 billion in December, according to the data from the Bank of Korea (BOK).

Foreigners have been net sellers of Korean stocks and bonds since September 2024, reports Yonhap news agency.

In detail, foreigners' Korean stock selling amounted to $510 million in January, the sixth consecutive monthly outflow, though the reading fell from a record $3.86 billion net selling in December.

Foreigners also offloaded $1.27 billion worth of Korean bonds in the month following their net selling of $1.28 billion the previous month, the data showed.

"Fund outflows have continued due to concerns about growth momentum for domestic semiconductor companies and uncertainties regarding new policies of the new U.S. government. But the amount markedly narrowed last month on bargain hunting," the BOK said in a release.

The data also showed that the Korean currency fell to 1,453.4 won against the U.S. dollar in January from 1,452.7 won a month earlier.

But the daily fluctuation of the dollar-won exchange rate rose to an average of 5.9 won from 5.7 won over the cited period, the data showed.

The Korean won weakened markedly in recent months due mainly to the political turmoil sparked by President Yoon Suk Yeol's martial law declaration on Dec. 3 and the continued strengthening of the U.S. dollar.

Meanwhile, the South Korean central bank said on Friday that volatility has grown in the U.S. stock market led by IT shares, calling for close monitoring of its potential impact on the local market.

Bank of Korea (BOK) Deputy Gov. Ryoo Sang-dai made the comment during a meeting meant to check the market situation after the Federal Reserve decided to hold the benchmark interest rate steady on Wednesday (local time) following three consecutive rate cuts.

"The Fed's decision did not have a major impact on the market as it had been largely anticipated, but volatility has grown in the U.S. stock market centering on tech shares. We need to closely monitor its possible repercussion on the domestic market," Ryoo said.

Earlier this week, U.S. shares sank markedly after a Chinese artificial intelligence (AI) startup, DeepSeek, presented an advanced and more affordable AI model, stoking fears of it challenging the dominance of U.S. tech giants.

The benchmark Korea Composite Stock Price Index (KOSPI) went down 0.77 percent to 2,517.37 Friday due to the sharp fall of large-cap tech shares. The Korean won also fell markedly against the U.S. dollar to a two-week low of 1,452.7 won.

Foreigners maintain net selling mode in South Korean stock, bond markets in Jan