Data from the Korea Exchange on October 11 showed that as of October 7, foreign investors held 46.37% of Samsung Electronics shares, the lowest level in about 17 years and 3 months since 46.45% on July 16, 2009.

Compared with the KOSPI uptrend at the start of this year, when foreign ownership of Samsung Electronics still stood at 52.4%, the current decline is striking. After the outbreak of the U.S.-Iran conflict, foreign ownership of Samsung Electronics fell below 50% in March, and amid severe market volatility it dropped further to 48% in May.

Even though Samsung Electronics reported a record quarterly operating profit of 107 trillion won, it still failed to curb selling pressure from foreign investors. Over the same period, foreign ownership of SK Hynix stood at 49.59%. Foreign ownership of SK Hynix had remained above 50% since 2023, but after falling below 50% at the end of last month, it has hovered in the 49% range for eight consecutive trading days.

This year, net foreign selling in the KOSPI market has exceeded 197 trillion won. Compared with net selling of 4 trillion won last year, a balanced market in 2024 and net buying of 11 trillion won in 2023, this year's selling scale is unprecedented. The securities industry predicts that it will be difficult for foreign investors to return to net buying.

Lee Jaewon, a researcher at the Korea branch of Yuanta Securities, analyzed: "We have once again confirmed that strong earnings alone are not enough to reverse foreign capital flows. Geopolitical events themselves will not directly prompt foreign investors to return." He added: "Further expansion of the portfolio requires a substantive shift in foreign capital flows." He also advised: "As selling pressure gradually eases, a phased response strategy will be more effective."