Emerging economies witnessed a massive foreign capital outflow in the third quarter as the United States is expected to raise interest rates.
 
The Institute for International Finance said on Sunday that emerging countries suffered from an outflow of foreign funds worth 40 trillion won in the July-September period, the largest since the fourth quarter in 2008.
 
By country, South Korea witnessed the largest outflow with 12-point-eight trillion won among 15 emerging economies excluding China and the Philippines, whose data for the period were not produced yet.
 
However, China is believed to have suffered from a larger outflow than South Korea, as it posted more than 12 trillion won in June alone.
 
About 70 percent of the foreign funds that flew out of South Korea were funds invested in South Korean shares, while 30 percent were funds invested in Korean bonds.