Foreign investments in Korean stocks outside the country reach a new high of $651 billion following a three-month surge in foreign purchases.
Global investment banks have revised their forecasts for South Korea's economic growth in 2025, with projections hovering around 1%. This optimistic outlook is attributed to easing trade uncertainties with the United States, following a tariff deal that set U.S. tariffs on Korean imports at 15%, down from a previously threatened 25%.
The average forecast by eight major banks, including Goldman Sachs, UBS, Barclays, and Nomura, is around 1%. Goldman Sachs and UBS predict slightly higher growth rates of 1.2% each. This improvement in growth outlook follows the resolution of trade concerns, particularly benefiting key export sectors like semiconductors.
Foreign investors play a crucial role in the dynamics of the Korean market. The improved economic sentiment among global investors, driven by tariff agreements and growth upgrades, typically fosters increased foreign inflows. Foreign portfolio and direct investment into South Korea have been significant, especially aligning with large trade relationships and investment pledges such as Korea's $350 billion investment commitment to the U.S.
The Bank of Korea will update its own forecast soon, currently at about 0.8%, which may adjust upward given these developments. If more specific data on foreign ownership trends in the Korean stock market is needed, further targeted search or market reports would be required.
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[This article was translated from the JoongAng Ilbo using generative AI.]
- The revised forecasts for South Korea's economic growth by global investment banks, such as Goldman Sachs and UBS, are primarily attributed to the easing of trade uncertainties with the United States.
- The predictions for South Korea's economic growth in 2025 are mostly around 1%, with Goldman Sachs and UBS projecting slightly higher growth rates of 1.2% each.
- Foreign investors, including those from Goldman Sachs, UBS, Barclays, and Nomura, are crucial in the dynamics of the Korean market, and the improved economic sentiment is expected to lead to increased foreign inflows.
- The Bank of Korea will soon update its own forecast, which is currently at about 0.8%, and may adjust upward given the recent developments.
- Foreign ownership trends in the Korean stock market can be found through further targeted search or market reports, as specific data on this matter is not yet provided.
