[Edaily Reporter Hyera Lee ] While foreign investors have been engaging in large-scale selling on the KOSPI market this month, they have been steadily buying certain stocks. Market observers note that, amid the recent sharp stock market decline which has made valuations more attractive, buying momentum continues for market-leading sectors such as semiconductors and for stocks with medium- to long-term growth potential.

According to the Korea Exchange on the 22nd, foreign investors have recorded net sales of approximately 8.705 trillion won in the stock market this month (excluding exchange-traded funds (ETFs) and other instruments). During the same period, retail investors and institutions absorbed the foreign sell-off with net purchases of approximately 7.794 trillion won and 402 billion won, respectively. Cumulative net sales by foreign investors since the beginning of the year have reached approximately 157 trillion won.
Despite this record-breaking selling spree, foreign investors actively bought up certain stocks. The top 10 stocks by net buying included LG Innotek(011070), DB HiTek Co.,LTD(000990), HANMISemiconductorCO.,Ltd.(042700), HyundaiMotor(005380), SamsungElectroMechanics(009150), NAVER(035420)(hereinafter “Naver”), SAMSUNG C&T CORPORATION(028260), HYUNDAI ROTEM(064350), HyundaiMobis(012330), and LGELECTRONICS(066570).
The securities industry is taking note of the fact that recent net buying by foreign investors has been concentrated on existing leading stocks, such as semiconductors. These stocks are assessed to have lower valuation pressures as their share prices have declined amid recent market volatility.
In particular, preference for key sectors such as artificial intelligence (AI) and physical AI appears to remain strong. LGELECTRONICS and LG Innotek drew attention today as expectations for a physical AI partnership between the LG Group and NVIDIA resurfaced. SamsungElectroMechanics and DB HiTek Co.,LTD are believed to have been driven by expectations of continued strength in the semiconductor sector. For SamsungC&T CORPORATION, buying momentum is interpreted as being driven by expectations of a revaluation of its stake in SamsungElectronics.
Lee Kyung-min, an analyst at DaishinSecurities, said, “Despite the sharp decline in the KOSPI, the current 12-month forward price-to-earnings ratio (PER) is near historic lows,” adding, “As sectors such as semiconductors and IT hardware—which had been in overheated territory—have entered an undervalued range relative to their earnings, the likelihood of foreign investors shifting to buying is increasing.”
HyundaiMotor and HyundaiMobis were also among the top stocks with net foreign buying. These two stocks have seen their declines accelerate due to the recent market correction, highlighting their undervalued status. As of today, HyundaiMotor is down approximately 46.6% from its high this year, while HyundaiMobis is down about 37.6%. Lee Sang-soo, an analyst at iM Securities, commented, “Although HyundaiMotor is undergoing a period of stock price correction due to market volatility, its key roadmap—including the completion of a mass-production plant in 2028 and the launch of the Robot Meta-Plant Application Center—remains solid.”
Naver and HYUNDAI ROTEM also ranked among the top stocks in terms of net buying. Naver is driven by expectations for its AI Factory and won-denominated stablecoin business, while HYUNDAI ROTEM is fueled by the expansion of overseas orders.
However, some analysts suggest that additional factors to improve investor sentiment are needed for foreign capital flows to shift decisively toward net buying. Lee Jae-won, an analyst at Yuanta Securities Korea, elaborated, “To attract foreign capital inflows going forward, we need U.S. inflation figures to come in below expectations, an easing of geopolitical tensions between the U.S. and Iran, upward revisions to hyperscalers’ capital expenditure estimates, and strong earnings results.”