South Korean stocks and the Korean won fell Friday after foreign investors sold equities for 20 consecutive days [1, 2].

This trend of heavy profit-taking by international investors has destabilized local markets, driving volatility toward record highs and putting downward pressure on the national currency [2].

The sell-off reached a total of $13.2 billion [2]. This sustained exit by foreign capital has created significant headwinds for the domestic market, as investors move to lock in gains from previous rallies.

The currency market reflected this instability on Friday. The Korean won closed at 1,539.1 won per U.S. dollar [1]. This figure represents an increase of 9.4 won from the previous closing price [1].

Market analysts said that the 20-day streak of net selling [1] coincided with a period of heightened volatility. While some sectors of the market have previously seen growth driven by artificial intelligence and geopolitical hopes, the current scale of foreign liquidation has offset those gains.

The volatility remains a primary concern for regulators. The rapid shift in capital flow—characterized by the $13.2 billion withdrawal [2]—suggests a broader reallocation of assets by global fund managers away from South Korean holdings.

“Foreign investors sold equities for 20 consecutive days”

The sustained withdrawal of foreign capital indicates a shift in investor sentiment toward risk aversion in the South Korean market. When global investors engage in large-scale profit-taking, it often triggers a feedback loop that weakens the local currency, making it more expensive for the country to import goods and increasing the cost of foreign-denominated debt.