Seoul: Despite a recent upswing in the stock market, foreign ownership of South Korean shares has dipped to its lowest point in nearly one and a half years, as revealed by recent data.

According to Yonhap News Agency, foreign investors' holdings in Korean stocks on the benchmark Korea Composite Stock Price Index (KOSPI) represented 31.96 percent, or 676.43 trillion won (US$468.53 billion), of the total market capitalization as of the latest Thursday. This marks the lowest level since September 20, 2023, when offshore investors owned 31.97 percent of KOSPI-listed stocks.

Foreign investors have been net sellers of local stocks for six consecutive months, including January. This month alone, they have offloaded a net 1.75 trillion won worth of stocks on the main bourse, notwithstanding the 8 percent rise in the KOSPI so far this year.

The sell-offs by foreign investors are attributed to concerns about the implications of U.S. President Donald Trump's extensive tariffs on South Korean industries and the broader economy. Additionally, investors are cautious due to the domestic political scenario following the now-suspended President Yoon Suk Yeol's martial law declaration on December 3, 2024, coupled with weak growth momentum.

Lee Young-won from Heungkuk Securities stated, "The tariff issue could further affect the domestic stock market, as chances seem limited for South Korea to have negotiations with the U.S. and adjust the policy through top-level talks given domestic circumstances."

Data indicates that foreigners have sold 1.82 trillion won worth of shares in top-cap Samsung Electronics so far this year. This was followed by the sale of shares in the leading carmaker Hyundai Motor, worth 701 billion won, and shares in major financial firm KB Financial Group, worth 316 billion won.

On Friday, the KOSPI increased by 0.31 percent, closing at 2,591.05, achieving its highest level since October 30, 2024.