Foreign Investors Dump $6.6 Billion in Samsung and SK Hynix Shares – Here’s Why

TLDR

• Foreign investors sold over $6.6 billion worth of Samsung and SK Hynix shares in one week
• The selling streak has now run for 12 consecutive trading sessions since May 7
• Samsung and SK Hynix sales made up 73% of all foreign net selling in Korean stocks last week
• Investors rotated into robotics and energy storage system (ESS) stocks
• Analysts say the move reflects portfolio rebalancing after big gains in semiconductor shares

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Foreign investors sold more than 10 trillion South Korean won — about $6.6 billion — worth of shares in Samsung Electronics and SK Hynix last week. The selling extended a streak that has now lasted 12 straight trading sessions.

Samsung Electronics Co., Ltd., SMSN.L

The data comes from the Korea Exchange and Yonhap Infomax, covering the week starting May 18.

Investors offloaded a net 5.33 trillion won of SK Hynix shares and 5.26 trillion won of Samsung Electronics shares during that period.

Together, those two stocks made up 73 percent of all foreign net selling in the Korean market last week. Total foreign net selling of Korean stocks reached 14.45 trillion won for the week.

The selling started on May 7, when foreign investors turned net sellers. Over the full 12-session run, they sold a net 19.53 trillion won in SK Hynix and 18.87 trillion won in Samsung Electronics.

Those two stocks alone accounted for 82.9 percent of the total 46.34 trillion won in foreign net selling over that period.

Other stocks hit by foreign selling included Hyundai Mobis, Hyundai Motor, LG Electronics, and Samsung Electro-Mechanics.

Where the Money Is Going

While selling chip stocks, foreign investors moved into other areas of the Korean market.

On the main Kospi index, they bought a net 370 billion won of Doosan Robotics shares and 148.9 billion won of Samsung SDI shares. Samsung SDI makes batteries and energy storage products.

On the secondary Kosdaq market, foreigners were net buyers of 1.29 trillion won worth of shares overall.

Fadu, a fabless company focused on storage systems for AI data centers, saw foreign net buying of 155.6 billion won. Seojin System, which makes ESS and telecom equipment, saw 128 billion won in foreign purchases.

Analysts Point to Portfolio Rebalancing

Analysts say the selloff looks like a rebalancing move rather than a loss of confidence in the semiconductor sector.

Semiconductor stocks had risen sharply in the period before the selling began. As a result, their share of foreign portfolios grew larger than intended.

“Foreign investors may have responded with selling as the share of Korean semiconductor stocks in their portfolios increased sharply due to steep price gains,” said Kang Jin-hyuk, an analyst at Shinhan Securities.

He added that investors appear to be shifting funds into stocks where earnings are improving but prices are still relatively low.

The global robotics and ESS markets are seen as growth areas, driven by demand from physical AI applications and AI data centers.

As of May 22, the Kospi index closed at 2,847.71 points, up 0.41 percent on the day.