SEOUL (Reuters) – South Korea’s capital markets saw their biggest overseas outflows since March 2020 in December as heightened political uncertainty hit investor sentiment, central bank data showed on Wednesday.
Foreigners extended the South Korean stock market selloff to a fourth straight month last month by selling a net $2.58 billion.
In the bond market, they became net sellers for the first time in nine months, with net outflows of $1.28 billion.
The monthly outflow of a total of $3.86 billion was the largest since March 2020, when global financial markets were hit by the COVID-19 pandemic, according to the Bank of Korea.
Last month, the won weakened 5.2% against the dollar, posting its biggest monthly decline in 22 months due to heightened political uncertainty following President Yoon Suk Yeol’s short-lived martial law on Dec. 3.
