Foreign funds have flowed into the domestic stock market for the first time in 10 months. Foreign funds that had been experiencing net outflows since last August are now returning to net purchases as of last month. Foreign funds are also entering the bond market, with investments occurring for the fourth consecutive month.
The Financial Supervisory Service released the 'Foreign Securities Investment Trends for May 2025' on the 12th and noted, "Last month, foreigners net purchased 2.1 trillion won in listed shares and made a net investment of 11.337 trillion won in listed bonds."
Last month, foreigners net purchased 1.867 trillion won in the securities market and 143 billion won in the KOSDAQ market. Consequently, the proportion of domestic listed shares owned by foreigners slightly increased. The proportion of foreign ownership in the domestic stock market in May was 26.7%, up 0.2% from 26.5% in the previous month.
By country, the United States net purchased 1.8 trillion won, while Ireland net purchased 600 billion won. Canada and Norway, on the other hand, saw net sales of 600 billion won and 500 billion won, respectively.
Foreign funds are still flowing into the bond market. Last month, foreigners net purchased bonds worth 16.659 trillion won and received 5.322 trillion won in maturities. The net investment amount is 11.337 trillion won. The cumulative balance stands at 300.5 trillion won, with 11.2% of the listed bond balance being foreign funds.
By type of bond, there was a net investment of 11.7 trillion won in Government Bonds, while 400 billion won was net purchased in special bonds. By residual maturity, there were net purchases of 4.7 trillion won for terms over 5 years, 4.7 trillion won for terms between 1 to 5 years, and 1.9 trillion won for terms under 1 year.