$3.1B Worth Foreign Funds Flows into Korean Financial Market in June – BusinessKorea

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In June, the Korean financial market continued to stay stable thanks to an inflow of foreign investment funds.

According to “International Financial and Foreign Exchange Market Trends in May 2017,” released by the Bank of Korea (BOK) on July 12, US$ 3.09 billion worth foreign investment funds flew into the Korean stock market in June.

Foreign capital inflows into the stock market amounted to US$1.72 billion, and US$1.37 billion in bonds flew into the stock market. “Strong global investment sentiment continued to bring foreign funds to the Korean market,” the Bank of Korea said,

However, the amount of stock investment inflows dipped from US$5.27 billion in May.

The Korean won weakened last month. The won-dollar rate climbed 2.2% from 1,119.5 at the end of May to 1,144.1 at the end of June. The Korean won depreciated when developed countries such as Europe sent tightening signals in their monetary policies. “A deflationary threat has vanished,” said Mario Draghi, president of the European Central Bank (ECB) on July 27 (local time), suggesting a retrenchment policy.