The Korea Composite Stock Price Index closed at the highest level so far this year on Tuesday powered by foreign buying. The KOSPI ended at 2,040.96, up 1.02 percent from the previous day.
Individual and institutional investors sold around W250 billion (US$1=W1,065) worth of stocks, but foreign investors snapped up W323.3 billion worth.
Foreigners have bought W11.6 trillion worth of Korean stocks since Aug. 23 and are nearing 34 straight trading days of buying. The last time such a record was set was between January and March 1998, just after the Asian financial crisis.
By sector, machinery and service shares rose over two percent, while Samsung Electronics, the biggest company on the KOSPI in terms of market cap, rose 1.32 percent to W1.46 million.
Foreign stock buying is playing a major role in strengthening the won as they sell U.S. dollars or other foreign currencies to buy won to purchase Korean stocks. The won closed at W1,066.8 per dollar, up W4.7 from the previous day and the lowest in around nine months.