Foreigners Dump 51 Trillion Won as KOSPI Faces Semiconductor Sell-Off

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an AI-based customized news recommendation and summary service developed with support from the Korea Press Foundation. It selects and provides six tailored news items for each reader type.

1. How to Invest in ETFs Amid a Choppy Market? — "Hold Steady With Dividends and Fill Up on Semiconductors and Blue Chips"

- Key Summary: As geopolitical risks from the Middle East and interest rate uncertainty persist, three major asset managers have proposed mid-to-long-term ETF portfolio strategies that pursue both stability and growth rather than responding to short-term fluctuations. Mirae Asset Global Investments recommended securing both income and stability through 'TIGER Dividend Covered Call Active,' which employs a covered call strategy, and 'TIGER US Dividend Dow Jones,' which focuses on U.S. dividend growth stocks. Samsung Asset Management presented 'KODEX 200 Target Weekly Covered Call' and 'KODEX Shareholder Return High Dividend,' which holds companies with strong shareholder return and high dividend policies, as core products, also emphasizing strategic utilization through Return to Domestic Market Investment Accounts (RIA). Korea Investment Management recommended concentrated investment across domestic and overseas semiconductor value chains through 'ACE Global Semiconductor TOP4 Plus' and 'ACE AI Semiconductor TOP3+,' citing that sector fundamentals remain intact despite Middle East risks.

2. Foreigners Sell Off 50 Trillion Won in Two Months — Samsung Electronics Ownership Hits 12.5-Year Low

- Key Summary: As the KOSPI swings more than 240 points in a single day amid the prolonged Middle East conflict, foreign investors have net sold 51.4557 trillion won ($37.8 billion) since February, recording the largest selling wave since the global financial crisis. Some 72% of foreign net selling this month has been concentrated in Samsung Electronics (005930.KS) at 15.5586 trillion won and SK hynix (000660.KS) at 6.3193 trillion won, pushing Samsung Electronics' foreign ownership to 48.90% as of the 26th — its lowest since October 2013. Retail investors, meanwhile, have bought 30.6878 trillion won this month alone, supporting the downside, but investor deposit balances have shrunk by roughly 20 trillion won, from 132.0682 trillion won on the 4th of this month to 111.579 trillion won on the 26th. Experts assessed that the foreign selling trend may continue until high oil prices and the elevated exchange rate subside, or until a reassuring event emerges in the AI industry.

3. "Fiscal Soundness Is What Makes Korean Bonds Attractive" — Global Capital Inflows Expand After WGBI Inclusion

- Key Summary: Following Korea's inclusion in the FTSE World Government Bond Index (WGBI), inquiries have surged from virtually every investor category — central banks, sovereign wealth funds, asset managers, and hedge funds worldwide — as Korean government bonds are being reappraised as premium global assets. Stephen Chang, Asia Managing Director at PIMCO, evaluated that Korea's government debt at approximately 50% of GDP is lower than that of the United States, Japan, and major European nations, and that the stable management of fiscal deficits limits the burden of sovereign bond supply. However, according to the Bank for International Settlements (BIS), Korea's non-financial sector credit reached 6,500.5843 trillion won at the end of the third quarter last year, increasing by approximately 280 trillion won year-on-year, while government debt grew 9.8% year-on-year — faster than that of households (3.0%) and corporations (3.6%). Analysts note that improvements in market infrastructure driven by the bond index inclusion could also positively influence discussions on Korea's potential inclusion in the MSCI Developed Markets Index.

4. Smiling Through the KOSPI Slump — TDF ETFs Prove Defensive Strength in Volatile Markets

- Key Summary: Target-date fund (TDF) exchange-traded funds (ETFs) have emerged as alternative investment products after demonstrating defensive strength during recent market volatility. While the KOSPI fell more than 7% over the past month, 'TIGER TDF2045' posted a positive return of 0.75%, and 'KODEX TDF2050 Active (-1.63%)' and 'RISE TDF2050 Active (-1.48%)' also contained their losses. The TDF ETF market has surged from 255.5 billion won in 2024 to 1.74 trillion won as of the 25th of this month, driven by the expanded share of ETF investment within retirement pension accounts and growing demand for automatic asset allocation. Vintages targeting 2050 or later carry an aggressive profile with equity allocations exceeding 70%, while near-term vintages such as 2030 have a conservative structure with higher bond weightings, enabling differentiated choices based on investment preference.