Foreign Traders Buy Korean Cosmetic Stocks Shunned by Locals
- Overseas investors downplay impact of missile spat with China
- AmorePacific, least loved by locals, is a foreigner favorite
Inside Amorepacific Corp.'s Innisfree Cosmetics Store As Chinese Consumers Lift Korea's Kospi
Foreign investors are loading up on South Korea’s least-loved stocks, betting that a missile spat with China won’t dent tourist sales at the country’s cosmetic makers.
Overseas managers bought a net $401 million of AmorePacific Corp. shares since July 8, when South Korea agreed to deploy a U.S. missile shield, making it their second-most popular stock in the Kospi index. Local investors dumped almost $500 million of the shares in comparison, making it their least favorite. Aberdeen Asset Management and Baillie Gifford & Co. say they’re buying Korean shares with exposure to China as business prospects remain bright. Chinese tourist arrivals soared 260 percent last month and helped Korean duty-free stores post record sales.