Foreigners sold South Korean equities last month by most since early 2020 By Reuters

SEOUL (Reuters) – South Korea’s capital markets posted their biggest outflow since March 2020 in December as heightened political uncertainty hit investor sentiment, central bank data showed on Wednesday.

Last month, foreigners extended their sell-off in the South Korean stock market for a fourth consecutive month, 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 $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.

The won weakened 5.2% against the dollar last month, its biggest monthly decline in 22 months, amid heightened political uncertainty after President Yun Suk-yeol declared a brief martial law on Dec. 3.