As the global manufacturing industry shows signs of recovery, a spring breeze is blowing in the domestic export/import and stock markets.

According to major foreign news outlets such as Bloomberg on the 1st, foreign buying of domestic stocks has reached an all-time high due to the AI craze.

Foreign investors net purchased $12.2 billion (about 16 trillion won) in the domestic stock market in the first quarter of this year, which is said to be the second largest amount in Asia after Japan. In particular, Samsung Electronics, which supplies chips to the global AI supply chain, was recorded at $4.1 billion, followed by SK Hynix at $1.3 billion.

This is evident in the recent upward movement of the stock prices of the two companies, and in fact, SK Hynix closed at 185,500 won, up 1.37% on the 1st. It also renewed its all-time high by hitting 190,500 won during the day.

Samsung Electronics also closed at 82,000 won after hitting a 52-week high of 83,300 won on the same day. Foreign investors recorded net purchases of Samsung Electronics for the 10th day in a row, showing how strong the AI and semiconductor theme craze is.

According to the Korea Financial Investment Association, foreign net buying of KOSPI is at its highest level in 15 years. The percentage of foreigners in the total KOSPI stock holdings stands at 34.42%.

According to the export and import trends for March 2024 announced by the Ministry of Trade, Industry and Energy on the 1st, our country has seen exports increase for 6 consecutive months and achieved a trade surplus for 10 consecutive months. In particular, semiconductor exports reached $11.7 billion, recording the highest performance in 21 months.

Minister of Trade, Industry and Energy Ahn Deok-geun said, “In the second quarter, exports of IT products such as semiconductors and ships will increase, and the export boom of major products such as automobiles and general machinery that has continued since last year is expected to continue, leading to an upward trend in exports and a surplus.”

While the global manufacturing recovery is showing signs of a trade boom, it is being pointed out that Korea is vulnerable to global geopolitical factors such as the US-China conflict and China's economic volatility. In the future, domestic general elections and changes in external situations are expected to be variables.