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This video analyzes why the Korean stock market is staying steady despite foreign investors withdrawing massive amounts of capital recently. The key points are as follows:
Key Summary:
Foreign Outflow: During the first six trading days of September, foreign investors sold approximately 12 trillion KRW worth of Korean stocks (mainly Samsung Electronics and SK hynix).
Impact of Share Buybacks: Large Korean corporations are defending the index by absorbing the massive sell-off from foreigners through share buybacks. SK hynix and Samsung Electronics are currently executing share buyback plans totaling 55 trillion KRW.
Market Distortion: It points out that the current Korean stock market is in a distorted state, where the index is being maintained not by market confidence, but by artificial support ("stock price maintenance measures") through the financial power of these two major corporations.
Risk Factors: The primary cause of foreign selling is the movement of capital due to US interest rate hikes. There is a warning that as the end of the corporations' share buybacks approaches (scheduled for mid-October), the market faces the risk of losing its safety net.
Conclusion: Analysts view the Korean stock market as being in a "time bomb" state, where it could experience significant volatility once the defensive buying from corporations ends in the absence of real market buyers.