Foreign Investors Sell $81B in Korean, Taiwan Stock in 3 Months Amid Semiconductor Overweight Correction

MSCI-10.69%
According to Korean Economic TV, foreign investors executed net sales of approximately 108 trillion Korean won (about $81 billion) across South Korean and Taiwan equities over the past three months, driven by portfolio rebalancing concerns. The massive outflow stems from active fund managers reducing overweight positions in semiconductor stocks as South Korea and Taiwan's combined weight in the MSCI Emerging Markets index surged to nearly 50% from about 32% earlier in the year, with Taiwan's weight climbing to 26.4% and South Korea's to 23.1%. Active fund managers, representing roughly $1.3 trillion in assets, faced risk management pressures to rebalance, particularly as 82% of surveyed global fund managers identified global semiconductors as the most crowded trade.
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