A recent mass exodus of foreign money from the Korean stock market is being attributed mainly to the weak Japanese yen. The Korea Exchange says foreign investors have sold off more than US$1.4 billion in local stocks in the last two weeks.

They are rushing to exit the market, pundits say, because the weaker yen is dealing a blow to Korean exporters and undermining prospects for price competitiveness. Analysts say the latest streak of foreign selling indicates investors are looking for short-term profit from the exchange rate gap between the won and yen.