By Kim Tae-gyu
Staff Reporter
Overseas investors sold shares in KT, LG Chem and the Industrial Bank of Korea (IBK) during the first six months of this year, according to the Korea Exchange (KRX) Tuesday. It said that foreigners disposed 1.22 trillion won worth of KT stocks in the first half, the largest amount among the country's top 50 firms in terms of market capitalization. KT is the dominant telecom company here.
LG Chem, the nation's leading maker of chemical products, came in second with a net selling of 179.38 billion won, followed by IBK with 152.81 billion won.
Also included in the list was Korea Gas Corporation with 131.17 billion won, Hana Financial Group with 94.55 billion won and Hyundai Steel with 92.45 billion won.
``The low dividends of KT disappointed foreigners. For LG Chem, they seemed to have cashed in profits this year,'' Korea Investment Securities analyst Na Jung-oh said.
Traditionally, KT has maintained a high dividend ratio and this has attracted dividend-sensitive foreign investors to the former state monopoly.
The firm paid out 2,000 won to shareholders per share in recent years, but it reduced the amount to 1,120 won this year ahead of a merger.
The Bundang, Gyeonggi Province-headquartered outfit merged with its affiliate KTF, the country's second biggest player in the wireless telecom market, last month.
``Foreigners appear to have oversold KT shares. In consideration of its good fundamentals, its stocks are a good buy,'' Na said.
In comparison, foreign players snapped up shares in the country's foremost companies, such as Samsung Electronics and POSCO, over the January-June period.
They posted a net buying of 2.25 trillion won for Samsung, the world's primary producer of memory chips and flat-panel displays as well as the No. 2 player in the cell phone business.
The figure for POSCO, the country's top steel manufacturer, was 1.64 trillion won, followed by Hyundai Motor, the country's leading automaker, with 921.31 billion won.
LG Display placed fourth with 785.65 billion won, followed by Shinsegae at 655.21 billion won and Hyundai Engineering and Construction with 609.23 billion won.
``As the stock market rebounds this year, foreigners have started their hunt for more stable corporations on the Seoul bourse,'' said an analyst who declined to be named.
``Samsung Electronics and POSCO experienced benefits from the positive sentiment of overseas investors."