Foreign institutional investors including BlackRock, Fidelity, and Norway's sovereign wealth fund increased their stakes in Korean listed companies as of end-June, according to CEO Score data released on the 15th. The research firm reported 123 cases where foreign entities held 5% or more stakes in top 500 market-cap companies, up 29.5% from 95 cases in the same period last year. US asset managers led the increase with 69 cases, focusing investments on K-beauty, semiconductors, and pharmaceutical/biotech sectors. BlackRock expanded most aggressively, adding 12 companies to reach major shareholder status in 19 Korean firms total. The K-beauty sector saw the sharpest surge, with foreign 5%+ ownership cases jumping from 2 to 9 year-over-year.
BlackRock Holds Stakes in Samsung Electronics and SK Hynix
BlackRock became a major shareholder in 19 Korean listed companies, adding 12 companies over the past year. The asset manager's holdings include KB Financial Group (7.41%), Hana Financial Group (7.22%), Woori Financial Group (7.18%), LG Display (7.16%), POSCO Holdings (6.23%), KT&G (6.15%), Shinhan Financial Group (6.12%), and NAVER (6.11%). BlackRock also holds over 5% stakes in Samsung Electronics (5.14%), SK Hynix (5.11%), LG Chem (5.01%), and Samsung Electro-Mechanics (5.01%).
Fidelity invested in GST (9.10%), Korea Aerospace Industries (6.92%), NICE Information Service (6.49%), Dalba Global (5.06%), and APR (5.01%). Capital Group holds stakes in KT&G (8.22%), KB Financial Group (7.17%), Eugene Technology (6.54%), and Hana Financial Group (5.63%). JP Morgan Asset Management became a major shareholder in Eugene Technology (6.48%), Hansol Chemical (5.51%), Semiphive (5.22%), and HDC Hyundai Development Company (5.08%).
Sovereign Wealth Funds Invest in Cosmax
The cosmetics sector attracted the most foreign interest, with cases of 5%+ foreign ownership surging from 2 to 9 year-over-year. Cosmax received investments from multiple sovereign wealth funds including Singapore's GIC (6.33%), Norway's central bank (6.08%), and the Singapore government (5.40%), in addition to existing investor Fidelity International (5.33%).
Foreign capital expanded into brand companies. Dalba Global attracted UK-based M&G Investment (7.58%) and Fidelity International (5.06%) as major shareholders. Fidelity Investment secured 5.01% of APR. UK's Silchester holds 7.33% of LG Household & Health Care.
Norway's central bank invested in six companies including CJ Logistics (6.16%), Cosmax (6.08%), and F&F (5.04%). UK's Silchester holds stakes in LG (7.39%), LG Household & Health Care (7.33%), and Orion (5.03%). Orbis invested in Daou Technology (9.81%), Hanwha Vision (7.64%), and Daou Data (7.35%).
Semiconductor Investments Expand to Mid-Sized Companies
Semiconductor and pharmaceutical/biotech sectors each added four cases of foreign investment. Semiconductor investments expanded beyond large-cap stocks to include equipment and component companies with technical capabilities.
BlackRock expanded its SK Hynix stake back above 5%. Miri Capital invested in Mico (9.27%) and Komico (5.61%), while Fidelity holds 9.10% of GST. Capital Group and JP Morgan Asset Management both purchased Eugene Technology shares, and JP Morgan Asset Management also invested in Semiphive (5.22%).
In biotech, BlackRock became a major shareholder in HLB (6.05%) and Yuhan Corporation (5.07%). Copernicus invested in Chong Kun Dang (8.38%), and MFS holds 5.05% of Hugel.
Regional Investment Patterns by Country
Japanese capital concentrated on joint venture investments. Examples include TCK (Tokai Carbon 52.63%), S1 Corporation (Secom 25.65%), and Kolmar Korea (Kolmar Japan 11.77%).
Chinese investors, centered on Tencent, focused on gaming and content companies. Tencent holds stakes in Shift Up (34.66%), Netmarble (18.38%), Krafton (14.40%), SM Entertainment (9.66%), and Kakao (5.74%). Doublestar Group owns 45.0% of Kumho Tire, Alipay holds 27.04% of Kakao Pay, and CNGR became a major shareholder in Fino (36.71%).
By region, US-based asset managers and funds led with 69 cases, followed by Europe with 25 cases, Japan with 10 cases, and China with 8 cases. Insurance and food/beverage sectors each added three cases, while financial holding companies and steel/metals added two cases each. Medical devices decreased by two cases, while secondary batteries, retail, services, and securities each declined by one case.
FAQ
Which foreign investor increased Korean stocks holdings most aggressively?
BlackRock became the most aggressive investor, adding 12 companies over the past year to reach major shareholder status in 19 Korean listed companies total. BlackRock's holdings include Samsung Electronics (5.14%), SK Hynix (5.11%), KB Financial Group (7.41%), and Hana Financial Group (7.22%).
What happened to foreign ownership in the Korean cosmetics sector?
Foreign 5%+ ownership cases in the cosmetics sector surged from 2 to 9 year-over-year as of end-June. Cosmax attracted multiple sovereign wealth funds including Singapore's GIC (6.33%), Norway's central bank (6.08%), and the Singapore government (5.40%), alongside existing investor Fidelity International (5.33%).
How did Chinese investors allocate capital in Korean stocks?
Chinese investors, centered on Tencent, focused on gaming and content companies. Tencent holds stakes in Shift Up (34.66%), Netmarble (18.38%), Krafton (14.40%), SM Entertainment (9.66%), and Kakao (5.74%). Other Chinese entities invested in automotive and fintech sectors.
