Foreigners' profits soar on Seoul bourse

SEOUL, Dec. 13 (Yonhap) -- Foreign equity investors' profits soared on the South
Korean stock exchange this year, with their earnings reflecting the domestic
economy's rebound from last fall's global financial crisis, the Korea Exchange
(KRX) said Sunday.

Foreign investors profited by some 89 trillion won (US$76 billion) and purchased
a net 31.5 trillion won worth of shares this year, according to the bourse
operator.
The profit breaks the record of 70.7 trillion won foreign investors made in 2007
in the local stock market. South Korea, Asia's fourth-largest economy, opened its
stock market to foreign investors for the first time in 1992.
Meanwhile, foreign holdings increased by 72.7 percent, with shares worth 286
trillion won as of Dec. 10, up from the 165 trillion won worth of shares they
owned on Dec. 30 last year.
"Acknowledging the ability the local stock market has in fighting off the
financial crisis, international investors mass-purchased local shares, making
large profits as they anticipated," said Samsung Securities analyst Hwang
Geum-dan.
The stock prices of the top 10 most frequently traded issues by foreign investors
increased by an average of 80.61 percent, with Samsung Electronics, POSCO and
Shinhan Financial Group advancing by 74.72 percent, 50 percent and 62.78 percent,
respectively.
Foreign holdings are anticipated to run strong next year, with international
investors remaining a dominant force in the local stock market, analysts said.
"Due to strong global mobility and the relatively cheap valuation of the Korean
stock market (compared to U.S. and British ones), we believe the high net
purchasing of foreigners will continue next year," said Hwang. "But they will buy
less or stop buying should local firms fail to continue advancing as they hope."
hayney@yna.co.kr
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