SEOUL, October 15 (AJP) - Foreign investors became net buyers of more than US$9 billion worth of Korean stocks and bonds in September, marking a sharp turnaround from a $600 million net outflow in August and signaling a recovery in confidence toward the Korean capital market, the central bank said Wednesday.
According to data from the Bank of Korea, net foreign inflows into Korean securities reached $9.12 billion last month — $4.34 billion in equities and $4.48 billion in bonds.
Foreign investment in local stocks extended its fifth consecutive month of net inflows, with September's figure the largest since February 2024. The turnaround was even more pronounced in the debt market, where foreign investors injected nearly $5 billion, contrasting with an outflow of $770 million in August.
The credit default swap (CDS) premium, a key gauge of sovereign credit risk, narrowed by 1 basis point from August, reflecting improved sentiment toward Korea’s credit standing.
Borrowing conditions remained generally stable. The short-term foreign borrowing spread edged up 1 basis point from August, while the medium- to long-term spread climbed 9 basis points. The addition rate on foreign currencies, an indicator of funding costs for raising foreign-denominated capital, also remained steady.
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