3 weeks ago

South Korea, Taiwan draw foreign capital as India outflows moderate

South Korea, Taiwan draw foreign capital as India outflows moderate
India vs Taiwan, South Korea: Where is global capital heading next? · businesstoday.in

Imagine the world is a big money map.

Investors from other countries decide where to put their money.

This year, South Korea and Taiwan are popular places to put money.

They received billions of dollars from foreign investors.

India, on the other hand, has seen some investors take money out.

But the selling in India is getting slower.

Since mid-June, money in India-focused funds has done better than money in other emerging-market funds.

Much of the money moving to Taiwan and South Korea is tied to the AI trade.

AI stands for artificial intelligence, and many investors are excited about it.

Now, experts say the AI trade is getting crowded and may be slowing down.

Key facts

South Korea foreign inflows
$3.5 billion
Taiwan foreign inflows
$1.8 billion (23-week high)
GEM funds inflow
$4 billion (six-month high)
Global industrial funds inflow
$1.3 billion (seven-week high)
India-focused long-only funds
Continued redemptions with moderating pace
India relative outperformance
About 10% since mid-June vs emerging-market long-only funds
AI trade status
Crowded over past three months; early signs of slowing rotation

Quotes

Elara

Analyst at Elara Capital

“Elara said much of the pressure during 2026 reflected capital being redirected towards the AI trade, particularly in Taiwan and South Korea.”
businesstoday.in

Sources

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