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Foreign investors' net investment in South Korean stocks reached its highest level in more than 1 1/2 years last month amid expectations of improved conditions in the chip industry, central bank data showed Wednesday. Offshore investors purchased a net $4.34 billion worth of local stocks in September, marking the largest amount since February 2024, when net investment stood at $5.59 billion, according to the data from the Bank of Korea (BOK). It marked the second consecutive month of net inflows in foreign securities' investment, following $180 million in August. Foreign investors also bought $4.78 billion worth of bonds in September, rebounding from a net selling of $770 million a month earlier. "Foreign investment was focused on the electronics sector amid expectations of better conditions in the semiconductor industry," the BOK said. "The growth in bond investment was driven by rising demand for mid- to long-term bonds." According to the Korea Exchange (KRX), its semiconductor index rose 26.8 %, from 3,780.05 on Sept. 1 to 4,792.07 on Sept. 30, while the benchmark Korea Composite Stock Price Index (KOSPI) gained 9 % over the same period. The central bank also noted that the Korean won weakened against the US dollar in September, falling to 1,402.9 won from August's 1,390.1 won.

South Korea posted a record current account surplus for any August, despite weak exports, driven by declining imports. Korean (Yonhap) News Agency said the country's current account surplus reached $9.15 billion in August, extending its surplus streak to the 28th consecutive month, according to data compiled by the Bank of Korea (BOK). South Korea has reported a current account surplus every month since May 2023. It also marked the highest figure on record for any August, though the surplus narrowed from the $10.78 billion posted in July. During the first eight months of this year, the cumulative current account surplus stood at $69.3 billion, compared with $55.94 billion recorded during the same period last year. The goods account posted a $9.4 billion surplus in August, the second largest for the month on record. Exports fell 1.8% on-year to $56.44 billion amid weak demand for steel and chemical products, while imports dropped 7.3% to $47.04 billion on lower global energy prices.