Seoul: Foreign investors are actively purchasing technology and automotive shares in the South Korean stock market, possibly becoming net buyers just a month after a net selling phase, recent data revealed.

According to Yonhap News Agency, foreign investors acquired a net 1.9 trillion won (approximately US$1.3 billion) in the Korea Stock Price Index (KOSPI) market from December 1 through Monday. This marks a significant reversal from November, when they offloaded a net 14.4 trillion won, as per the data from the Korea Exchange, the primary bourse operator in the country.

On Tuesday, foreign investors continued their buying streak, with net purchases amounting to 373.2 billion won in local stocks by 11:10 a.m. Offshore investors are primarily targeting large-cap semiconductor manufacturers and automotive companies. Notably, SK hynix emerged as their top choice, with net purchases totaling 824.7 billion won. Additionally, foreigners acquired 426.1 billion won worth of preferred shares in Samsung Electronics and 322.1 billion won in shares of Hyundai Motor.

Han Ji-young, an analyst at Kiwoom Securities Co., noted, "Foreigners and institutions have turned net buyers and are leading the year-end stock rally, bolstered by favorable factors from the U.S. stock market, including recent advances in AI-related stocks."

Shares of U.S. chipmaker Micron Technology reached an all-time high of $230.55 on Monday (local time) after the company indicated strong demand for its memory chips used in AI infrastructure. Meanwhile, local carmakers have gained attention following a trade agreement between Seoul and Washington in October, which alleviated tariff uncertainties affecting the sector, analysts observed.

Han further commented, "The local stock market is likely to continue its upward trend due to ongoing semiconductor momentum and rising anticipation for a Santa Claus rally."