Foreign investors significantly increased their holdings of South Korean bonds and equities in May 2025, with purchases totaling over $9.3 billion, marking the highest inflow in two years. The total foreign ownership of South Korean bonds surpassed 300 trillion won, rising by 10.9 trillion won in May alone. This surge in foreign capital inflows contributed to South Korea's stock market achieving the highest returns among G20 countries over the past month. The KOSPI index has risen 6% over the past year and 34% over five years, supported by optimism surrounding the new administration of President Lee Jae-Myung, who has pledged a $30 billion technology stimulus package. Additionally, Seoul shares experienced a 1.8% increase driven by bargain hunting in defense, energy, and IT sectors. The Bank of Korea reported a 0.5% month-on-month increase in seasonally adjusted money supply for April 2025, with an 8.1 trillion won rise attributed to pre-interest rate cut deposit demand.