Foreign investors increased their holdings in Korean semiconductor equipment and consumer goods stocks this month through July 10, according to investment industry data. The buying pattern reflects growing interest in performance-backed stocks ahead of the Q2 earnings season. Among listed companies on the Korea Exchange, Daeduk Electronics saw the largest foreign ownership increase this month, rising 3.43 percentage points from 16.17% to 19.60%, while LG Innotek's foreign ownership climbed 2.39 percentage points from 23.39% to 25.78%. The purchases concentrated in semiconductor materials and components firms expected to report strong Q2 results, as well as retail and telecom stocks with defensive characteristics.
Daeduk Electronics and Semiconductor Component Firms See Largest Foreign Ownership Gains
Daeduk Electronics recorded the highest foreign ownership increase on the Korea Exchange this month, with foreign investor holdings rising from 16.17% at the start of the month to 19.60%. The company specializes in semiconductor printed circuit board (PCB) production. According to AI-based investment information service Epic AI, Daeduk Electronics' Q2 operating profit consensus stands at 62.8 billion won, representing a 3,265% increase compared to the same period last year.
LG Innotek, known as an iPhone beneficiary stock, saw foreign ownership rise 2.39 percentage points from 23.39% to 25.78% during the same period. The company's Q2 operating profit consensus reached 177.5 billion won, an estimated 1,458% increase from the previous year. The company's optical solution business showed strong performance, while its high-margin semiconductor substrate division demonstrated growth momentum. Its flip-chip ball grid array (FC-BGA) next-generation substrate business is anticipated to drive performance following facility expansion.
Other semiconductor-related companies also experienced notable foreign ownership increases. Haesung DS, a semiconductor back-end process components specialist, saw foreign ownership rise from 18.29% to 20.51%. Hansol Technics, a comprehensive electronic components company, recorded an increase from 3.82% to 5.83%. Korea Circuit, a PCB specialist, showed foreign ownership growth from 4.64% to 6.60%.
Cosmetics and Retail Stocks Attract Foreign Investment on Export Growth
Koreakolmar experienced foreign ownership growth from 38.28% to 40.32% amid strong Korean cosmetics export performance. The company's Q2 operating profit estimate reached 95.2 billion won, a 29.6% increase compared to the same period last year.
Shinsegae and Hyundai Department Store also recorded foreign ownership increases. Shinsegae's foreign ownership rose from 25.13% to 26.72%, while Hyundai Department Store's climbed from 23.92% to 25.32%. The department store sector faces performance improvement expectations this year due to a surge in foreign tourists. Shinsegae's Q2 operating profit consensus stands at 148.8 billion won, nearly double the previous year's figure.
SK Telecom Foreign Ownership Rises on Defensive Stock Appeal
SK Telecom recorded a notable foreign ownership increase from 76.76% to 78.22%. The company is categorized as a defensive stock less affected by economic fluctuations. Shareholder return attractiveness stimulated foreign investor sentiment toward the telecom company.
FAQ
Which Korean stock saw the largest foreign ownership increase this month?
Daeduk Electronics recorded the largest foreign ownership increase on the Korea Exchange this month, with foreign holdings rising 3.43 percentage points from 16.17% to 19.60%. The semiconductor PCB manufacturer's Q2 operating profit consensus stands at 62.8 billion won, representing a 3,265% year-over-year increase.
Why are foreign investors increasing holdings in Korean semiconductor and consumer stocks?
Foreign investors are concentrating purchases in performance-backed stocks ahead of the Q2 earnings season. Semiconductor materials and components firms face strong demand expectations, while retail stocks benefit from surging foreign tourist numbers. Defensive stocks like SK Telecom also attracted investment due to their resistance to economic fluctuations and shareholder return policies.
