Source: Bloomberg/South Korean Ministry of Finance

On Tuesday, South Korea was hit by a big sale of sovereign bonds for the second time in three months, leading some to wonder who is leaving, and whether investors have been rattled by escalating tensions.

Bloomberg reports that Franklin Templeton Investment’s US$40 billion Global Bond Fund cut its Korean holding by almost half earlier this year, and some say may be behind the withdrawal.

One analyst linked the selling to Norway’s sovereign wealth fund, though a proposal to streamline the fund’s portfolio has yet to be approved.

The selloff on Tuesday was the largest withdrawal by foreign investors since at least 2014, according to Bloomberg.