Irish investors join global rush into Korean equities

Irish investors emerged as surprise heavyweights in Korea’s stock market upswing, becoming the second-largest net buyers with 4 trillion won ($2.8 billion) in purchases over the past four months, regulatory data showed Tuesday.

According to the Financial Supervisory Service, Irish traders bought a net 4.2 trillion won of Korean equities between early June and late September, trailing only US investors, who topped the list with net purchases of 8.2 trillion won during the same period.

The surge marks a sharp jump from earlier in the year, when Irish investors bought an average of 100 billion won a month in the first half. That figure soared nearly tenfold in the latter months, exceeding 1 trillion won per month, the FSS data showed.

Other major buyers during the same period included those from Luxembourg with a net 1.7 trillion won, followed by Germany at 1.1 trillion won and China at 281 billion won.

One notable trend is the heightened activity among European investors. UK traders, in particular, have been the most active participants in Korea’s stock market this year, with total trading volume — combining buy and sell orders — reaching 557.4 trillion won as of the end of August, accounting for nearly half of all foreign trading during the period.

British investors have also shifted toward net buying. Despite being net sellers with 11.9 trillion won in outflows as of the end of August, they turned positive in September with 2.2 trillion won in net purchases. Separate figures from the Korea Exchange showed the momentum strengthened, with British investors emerging as the largest foreign buyers in October, piling on another 3.1 trillion won as of last week.

KRX data also showed other major European buyers this month included Norway with 585 billion won in net purchases, followed by Ireland with 329 billion won and Germany with 205 billion won. These all outpaced the US, whose net buying stood at 158 billion won, underscoring Europe’s growing appetite for Korean stocks.

Relentless foreign buying has been a key driver behind the Kospi’s record-breaking rally in recent months. Since early June, the benchmark index has surged 50 percent, repeatedly breaching resistance levels before crossing the 4,000 mark for the first time on Monday to close at a record 4,042.83. Foreign investors have accumulated a net 20 trillion won in Korean stocks during the period.

Yeom Dong-chan, an analyst at Korea Investment & Securities, said rising inflows from Europe, whose investors tend to focus on shareholder returns such as dividends and payouts, unlike US-based investors who take longer-term positions weighing broader factors, reflect growing global interest in Korean equities amid policy support.

“British investors, who had gradually cut their Korea exposure since the eurozone debt crisis in 2011, began rebuilding positions last year as the 'Value-Up' drive gained traction,” he said. “The latest inflows from countries such as Ireland, a key tax haven for British investors, and Luxembourg, which hosts hedge and active funds from both the US and Europe, signal renewed institutional interest from investors worldwide in Korean equities.”